[House Report 112-120]
[From the U.S. Government Publishing Office]


                                                  Union Calendar No. 70

112th Congress, 1st Session - - - - - - - - - - - - House Report 112-120

               FIRST SEMIANNUAL REPORT OF THE ACTIVITIES

                                 OF THE

                     COMMITTEE ON VETERANS' AFFAIRS

                                 OF THE

                        HOUSE OF REPRESENTATIVES

                               DURING THE

                      ONE HUNDRED TWELFTH CONGRESS

                              PURSUANT TO

    Clause 1(d) Rule XI of the Rules of the House of Representatives




 June 24, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                  ______

                U.S. GOVERNMENT PRINTING OFFICE
99-006                WASHINGTON : 2011












                     COMMITTEE ON VETERANS' AFFAIRS

                     JEFF MILLER, Florida, Chairman
CLIFF STEARNS, Florida               BOB FILNER, California
DOUG LAMBORN, Colorado               CORRINE BROWN, Florida
GUS M. BILIRAKIS, Florida            SILVESTRE REYES, Texas
DAVID P. ROE, Tennessee              MICHAEL H. MICHAUD, Maine
MARLIN A. STUTZMAN, Indiana          LINDA T. SANCHEZ, California
BILL FLORES, Texas                   BRUCE L. BRALEY, Iowa
BILL JOHNSON, Ohio                   JERRY McNERNEY, California
JEFF DENHAM, California              JOE DONNELLY, Indiana
JON RUNYAN, New Jersey               TIMOTHY J. WALZ, Minnesota
DAN BENISHEK, Michigan               JOHN BARROW, Georgia
ANN MARIE BUERKLE, New York          RUSS CARNAHAN, Missouri
TIM HUELSKAMP, Kansas
VACANCY
VACANCY
            Helen W. Tolar, Staff Director and Chief Counsel
                             SUBCOMMITTEES
       SUBCOMMITTEE ON DISABILITY ASSISTANCE AND MEMORIAL AFFAIRS

                    JON RUNYAN, New Jersey, Chairman
DOUG LAMBORN, Colorado               JERRY McNERNEY, California
ANN MARIE BUERKLE, New York          JOHN BARROW, Georgia
MARLIN A. STUTZMAN, Indiana          MICHAEL H. MICHAUD, Maine
VACANCY                              TIMOTHY J. WALZ, Minnesota
                              ----------                              

                  SUBCOMMITTEE ON ECONOMIC OPPORTUNITY

                   MARLIN STUTZMAN, Indiana, Chairman
GUS M. BILIRAKIS, Florida            BRUCE L. BRALEY, Iowa
BILL JOHNSON, Ohio                   LINDA T. SANCHEZ, California
TIM HUELSKAMP, Kansas                TIMOTHY J. WALZ, Minnesota
JEFF DENHAM, California
                              ----------                              

                         SUBCOMMITTEE ON HEALTH

                ANN MARIE BUERKLE, New York, Chairwoman
CLIFF STEARNS, Florida               MICHAEL H. MICHAUD, Maine
GUS M. BILIRAKIS, Florida            CORRINE BROWN, Florida
DAVID P. ROE, Tennessee              SILVESTRE REYES, Texas
DAN BENISHEK, Michigan               RUSS CARNAHAN, Missouri
JON RUNYAN, New Jersey               JOE DONNELLY, Indiana
                              ----------                              

              SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

                      BILL JOHNSON, Ohio, Chairman
CLIFF STEARNS, Florida               JOE DONNELLY, Indiana
DOUG LAMBORN, Colorado               JERRY McNERNEY, California
DAVID P. ROE, Tennessee              JOHN BARROW, Georgia
DAN BENISHEK, Michigan               BOB FILNER, California
BILL FLORES, Texas
                            Committee Staff

       Helen W. Tolar, Staff Director and Chief Counsel (1/3/11)
              Malcom A. Shorter, Democratic Staff Director
           Jonathan A. Towers, Deputy Staff Director (2/7/11)
               Tony J. Buckles, Democratic Chief of Staff
 David M. Tucker, Democratic Deputy Staff Director and Chief Counsel; 
                        Communications Director
Michael F. Brinck, Staff Director, Subcommittee on Economic Opportunity
     Jonathan A. Clark, Professional Staff Member, Subcommittee on 
Disability Assistance and Memorial Affairs and Subcommittee on Economic 
                              Opportunity
    William J. Collins, Staff Director, Subcommittee on Disability 
                    Assistance and Memorial Affairs
             Alyssa Crews, Staff Assistant (2/14/11-6/6/11)
              Bernadine N. Dotson, Financial Administrator
        Dolores A. Dunn, Staff Director, Subcommittee on Health
 Elby Godwin, Professional Staff Member, Subcommittee on Oversight and 
                            Investigations 
                                (2/1/11)
    Samantha E. Gonzalez, Research Assistant, Subcommittee on Health
     Eric E. Hannel, Staff Director, Subcommittee on Oversight and 
                        Investigations (1/12/11)
Martin L. Herbert, Democratic Staff Director, Subcommittee on Oversight 
                           and Investigations
               Micah T. Ketchel, Staff Assistant (6/2/11)
                   Diane K. Kirkland, Printing Clerk
   Juan Lara, Democratic Staff Director and Counsel, Subcommittee on 
                          Economic Opportunity
               Carol S. Murray, Democratic Office Manager
           Amy K. Mitchell, Communications Director (3/28/11)
 Kimberly W. Ross, Democratic Staff Director and Counsel, Subcommittee 
             on Disability Assistance and Memorial Affairs
          Michael N. Siegel, Legislative Coordinator (2/14/11)
            Debbie Smith, Democratic Legislative Coordinator
           Casey Street, Professional Staff Member (2/11/11)
    Orfa A. Torres, Democratic Senior Legislative Assistant for the 
  Subcommittees on Economic Opportunity and Oversight & Investigations
 Cathleen C. Wiblemo, Democratic Staff Director, Subcommittee on Health
  Jian Iza C. Zapata, Democratic Senior Legislative Assistant for the 
 Subcommittees on Disability Assistance and Memorial Affairs and Health









                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                            Committee on Veterans' Affairs,
                                     Washington, DC, June 24, 2011.
Hon. Karen L. Haas,
Clerk of the House of Representatives,
Washington, DC.
    Dear Ms. Haas: In accordance with clause 1(d) of rule XI of 
the Rules of the House of Representatives, I submit herewith 
the report of the Committee on Veterans' Affairs setting forth 
its activities in reviewing and studying the application, 
administration, and execution of those laws, the subject matter 
of which is within the jurisdiction of our committee.
            Sincerely,
                                               Jeff Miller,
                                                          Chairman.
                                FOREWORD

                              ----------                              

    The number of new veterans from Operation Enduring Freedom 
(OEF), Operation Iraqi Freedom (OIF), and Operation New Dawn 
continues to increase. The U.S. Department of Veterans Affairs 
(VA) also serves veterans from past conflicts, including World 
War II, Vietnam, Korea, Desert Shield, and Desert Storm. In the 
112th Congress, the House Committee on Veterans' Affairs, and 
the House, has begun to pass significant legislation, and 
provide proper oversight to make certain that our veterans 
receive the care and benefits that they rightfully deserve.
    In March of 2011 the Committee sent its Views and Estimates 
letter to the House Committee on the Budget. The letter was 
sent with great bipartisan support, receiving 22 signatures 
from the Members of this Committee. The Committee's budget 
request ensures that our Nation's heroes will receive the care 
and benefits they deserve, even during times of fiscal 
restraint.
    On May 12, 2011, the Committee favorably reported six bills 
to the House for consideration. All six passed the House with 
overwhelming bipartisan support. The legislation included fixes 
to the Post-9/11 GI Bill to keep current student veterans in 
the school of their choice (H.R. 1383); would establish a new 
process for the placement of monuments at Arlington National 
Cemetery, as well as enforce the reservation process at 
Arlington (H.R. 1627); impose penalties for small businesses 
claiming veteran-owned status (H.R. 1657); and reissue the 
annual Cost-of-Living Adjustment for veterans and survivors 
(H.R. 1407); help cut down on the bureaucracy experienced by 
veterans with pending claims by eliminating unwanted 
duplication of review of claims(H.R. 1484); as well as the 
implementation of a recognition program in the Department of 
Veterans Affairs to highlight businesses that hire veterans, 
the ``VetStar Award Program'' (H.R. 802).
    Oversight--During the 112th Congress, the House Committee 
on Veterans' Affairs has begun to conduct a substantial number 
of oversight hearings. The hearings have had a diverse range of 
topics, with one constant remaining the same, the commitment to 
helping our veterans. We will continue to make sure that the VA 
is working in a manner that best assists the veterans, while 
also operating in a way that most efficiently uses the funds 
appropriated to them. The cause of aiding veterans is far too 
righteous for us to allow for any wasteful spending within the 
VA.
    Acknowledgments--Although the 112th Congress is young, and 
while we still have much to accomplish, the work of my 
colleagues on this Committee thus far should not go unnoted. If 
their fervor for helping Veterans remains at the level it is, 
then I know this will be a very successful Congress for the 
Committee. I would like to thank the Honorable Bob Filner, 
Ranking Democratic Member of the Committee, for his tireless 
work to help our veterans. I also want to thank the Chairs and 
Ranking Democratic Members of the Subcommittees for all of 
their hard work: Honorable Jon Runyan and Honorable Jerry 
McNerney of the Subcommittee on Disability Assistance and 
Memorial Affairs; Honorable Marlin A. Stutzman and Honorable 
Bruce L. Braley of the Subcommittee on Economic Opportunity; 
Honorable Ann Marie Buerkle and Honorable Michael H. Michaud of 
the Subcommittee on Health; and, Honorable Bill Johnson and 
Honorable Joe Donnelly of the Subcommittee on Oversight and 
Investigations.
    I would also like to thank the staff of the House Committee 
on Veterans' Affairs. Their hard work and dedication to 
veterans' issues have a profound impact on the people we serve.
    Well known reporter and author, Elmer Davis, once stated, 
``This Nation will remain the land of the free only so long as 
it is the home of the brave.'' If we, as Americans, continue to 
know this to be an unequivocal truth, then it remains our noble 
obligation to help the brave, as they have helped us.
                                               Jeff Miller,
                                                          Chairman.







                            C O N T E N T S

                                                                   Page

Jurisdiction of the House Committee on Veterans' Affairs.........     1
Rules of the Committee on Veterans' Affairs......................     3
Activities of the Committee......................................     5
Activities of the Subcommittees:
    Subcommittee on Disability Assistance and Memorial Affairs...     8
    Subcommittee on Economic Opportunity.........................     9
    Subcommittee on Health.......................................    11
    Subcommittee on Oversight and Investigations.................    12
Hearings and Executive Sessions..................................    13
Committee Websites...............................................    15
Oversight Plan for 112th Congress................................    17
Report on the budget proposed for fiscal year 2012...............    29
Messages from the President and other Executive Branch 
  communications.................................................    40








                                                  Union Calendar No. 70
112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-120

======================================================================



 
FIRST SEMIANNUAL REPORT OF THE ACTIVITIES OF THE COMMITTEE ON VETERANS' 
                                AFFAIRS



                        HOUSE OF REPRESENTATIVES

                                _______
                                

 June 24, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

                        January 3-June 15, 2011

Mr. Miller, from the Committee on Veterans' Affairs, pursuant to Clause 
                 1(d) Rule XI, submitted the following

                              R E P O R T

                              JURISDICTION

          (1) There shall be four subcommittees of the 
        Committee as follows:
                  (A) Subcommittee on Disability Assistance and 
                Memorial Affairs, which shall have legislative, 
                oversight and investigative jurisdiction over 
                compensation; general and special pensions of 
                all the wars of the United States; life 
                insurance issued by the Government on account 
                of service in the Armed Forces; cemeteries of 
                the United States in which veterans of any war 
                or conflict are or may be buried, whether in 
                the United States or abroad, except cemeteries 
                administered by the Secretary of the Interior; 
                burial benefits; the Board of Veterans' 
                Appeals; and the United States Court of Appeals 
                for Veterans Claims.
                  (B) Subcommittee on Economic Opportunity, 
                which shall have legislative, oversight and 
                investigative jurisdiction over education of 
                veterans, employment and training of veterans, 
                vocational rehabilitation, veterans housing 
                programs, readjustment of servicemembers to 
                civilian life, and servicemembers civil relief.
                  (C) Subcommittee on Health, which shall have 
                legislative, oversight, and investigative 
                jurisdiction over the Veterans Health 
                Administration (VHA) including medical 
                services, medical support and compliance, 
                medical facilities, medical and prosthetic 
                research, and major and minor construction.
                  (D) Subcommittee on Oversight and 
                Investigations, which shall have oversight and 
                investigative jurisdiction over veterans 
                matters generally, information technology, 
                procurement, and over such matters as may be 
                referred to the subcommittee by the Chairman of 
                the full Committee for its oversight or 
                investigation and for its appropriate 
                recommendations. The subcommittee shall have 
                legislative jurisdiction over such bills or 
                resolutions as may be referred to it by the 
                Chairman of the full Committee. Provided, 
                however, that the activities of the 
                Subcommittee shall in no way limit the 
                responsibility of the other subcommittees of 
                the Committee on Veterans' Affairs for carrying 
                out their oversight duties.
          (2) Each subcommittee shall have responsibility for 
        such other measures or matters as the Chairman refers 
        to it.
    (b) Vacancies.--Any vacancy in the membership of a 
subcommittee shall not affect the power of the remaining 
members to execute the functions of that subcommittee.
    (c) Ratios.--On each subcommittee, there shall be a ratio 
of majority party members to minority party members which shall 
be consistent with the ratio on the full Committee.
    (d) Referral to Subcommittees.--The Chairman of the 
Committee may refer a measure or matter, which is within the 
general responsibility of more than one of the subcommittees of 
the Committee, as the Chairman deems appropriate. In referring 
any measure or matter to a subcommittee, the Chairman of the 
Committee may specify a date by which the subcommittee shall 
report thereon to the Committee.
    (e) Powers and Duties--
          (1) Each subcommittee is authorized to meet, hold 
        hearings, receive evidence, and report to the full 
        Committee on all matters referred to it or under its 
        jurisdiction. Subcommittee chairmen shall set dates for 
        hearings and meetings of their respective subcommittees 
        after consultation with the Chairman of the Committee 
        and other subcommittee chairmen with a view toward 
        avoiding simultaneous scheduling of Committee and 
        subcommittee meetings or hearings whenever possible.
          (2) Whenever a subcommittee has ordered a bill, 
        resolution, or other matter to be reported to the 
        Committee, the Chairman of the subcommittee reporting 
        the bill, resolution, or matter to the full Committee, 
        or any member authorized by the subcommittee to do so 
        shall notify the Chairman and the ranking minority 
        party member of the Committee of the Subcommittee's 
        action.
          (3) A member of the Committee who is not a member of 
        a particular subcommittee may sit with the subcommittee 
        during any of its meetings and hearings, but shall not 
        have authority to vote, cannot be counted for a quorum, 
        and cannot raise a point of order at the meeting or 
        hearing.
          (4) Each subcommittee shall provide the Committee 
        with copies of such record votes taken in subcommittee 
        and such other records with respect to the subcommittee 
        as the Chairman of the Committee deems necessary for 
        the Committee to comply with all rules and regulations 
        of the House.

                RULE 6--GENERAL OVERSIGHT RESPONSIBILITY

    (a) Purpose.--Pursuant to clause 2 of Rule X of the Rules 
of the House, the Committee shall carry out oversight 
responsibilities. In order to assist the House in--
          (1) Its analysis, appraisal, evaluation of--
                  (A) The application, administration, 
                execution, and effectiveness of the laws 
                enacted by the Congress, or
                  (B) Conditions and circumstances, which may 
                indicate the necessity or desirability of 
                enacting new or additional legislation, and
          (2) Its formulation, consideration and enactment of 
        such modifications or changes in those laws, and of 
        such additional legislation, as may be necessary or 
        appropriate, the Committee and its various 
        subcommittees, consistent with their jurisdiction as 
        set forth in Rule 5, shall have oversight 
        responsibilities as provided in subsection (b).
    (b) Review of Laws and Programs.--The Committee and its 
subcommittees shall review and study, on a continuing basis, 
the applications, administration, execution, and effectiveness 
of those laws, or parts of laws, the subject matter of which is 
within the jurisdiction of the Committee or subcommittee, and 
the organization and operation of the Federal agencies and 
entities having responsibilities in or for the administration 
and execution thereof, in order to determine whether such laws 
and the programs thereunder are being implemented and carried 
out in accordance with the intent of the Congress and whether 
such programs should be continued, curtailed, or eliminated. In 
addition, the Committee and its subcommittees shall review and 
study any conditions or circumstances which may indicate the 
necessity or desirability of enacting new or additional 
legislation within the jurisdiction of the Committee or 
subcommittee (whether or not any bill or resolution has been 
introduced with respect thereto), and shall on a continuing 
basis undertake future research and forecasting on matters 
within the jurisdiction of the Committee or subcommittee.
    (c) Oversight Plan.--Not later than February 15 of the 
first session of a Congress, the Committee shall meet in open 
session, with a quorum present, to adopt its oversight plans 
for that Congress for submission to the Committee on House 
Administration and the Committee on Oversight and Government 
Reform, in accordance with the provisions of clause 2(d) of 
Rule X of the Rules of the House.
    (d) Oversight by Subcommittees.--The existence and 
activities of the Subcommittee on Oversight and Investigations 
shall in no way limit the responsibility of the other 
subcommittees of the Committee on Veterans' Affairs for 
carrying out oversight duties.

                  RULE 7--BUDGET ACT RESPONSIBILITIES

    (a) Budget Act Responsibilities.--Pursuant to clause 
4(f)(1) of Rule X of the Rules of the House, the Committee 
shall submit to the Committee on the Budget not later than six 
weeks after the President submits his budget, or at such time 
as the Committee on the Budget may request--
          (1) Its views and estimates with respect to all 
        matters to be set forth in the concurrent resolution on 
        the budget for the ensuing fiscal year that are within 
        its jurisdiction or functions; and
          (2) An estimate of the total amounts of new budget 
        authority, and budget outlays resulting therefrom, to 
        be provided or authorized in all bills and resolutions 
        within its jurisdiction that it intends to be effective 
        during that fiscal year.

                   RULE 8--RECORDS AND OTHER MATTERS

    (a) Transcripts.--There shall be a transcript made of each 
regular and additional meeting and hearing of the Committee and 
its subcommittees. Any such transcript shall be a substantially 
verbatim account of remarks actually made during the 
proceedings, subject only to technical, grammatical, and 
typographical corrections authorized by the person making the 
remarks involved.
    (b) Records--
          (1) The Committee shall keep a record of all actions 
        of the Committee and each of its subcommittees. The 
        record shall contain all information required by clause 
        2(e)(1) of Rule XI of the Rules of the House and shall 
        be available for public inspection at reasonable times 
        in the offices of the Committee.
          (2) There shall be kept in writing a record of the 
        proceedings of the Committee and each of its 
        subcommittees, including a record of the votes on any 
        question on which a recorded vote is demanded. The 
        result of each such record vote shall be made available 
        by the Committee for inspection by the public at 
        reasonable times in the offices of the Committee. 
        Information so available for public inspection shall 
        include a description of the amendment, motion, order 
        or other proposition and the name of each member voting 
        for and each member voting against such amendment, 
        motion, order, or proposition, and the names of those 
        members present but not voting.
    (c) Availability of Archived Records.--The records of the 
Committee at the National Archives and Records Administration 
shall be made available for public use in accordance with Rule 
VII of the Rules of the House. The Chairman shall notify the 
ranking minority member of any decision, pursuant to clause 3 
or clause 4 of Rule VII of the Rules of the House, to withhold 
a record otherwise available, and the matter shall be presented 
to the Committee for a determination on written request of any 
member of the Committee.
    (d) Availability of Publications.--Pursuant to clause 
2(e)(4) of Rule XI of the Rules of the House, the Committee 
shall make its publications available in electronic form to the 
maximum extent feasible.

                         LEGISLATIVE ACTIVITIES

Full Committee Markup of H.R. 1407, Veterans' Compensation Cost-of-
        Living Adjustment Act of 2011; H.R. 1484, Veterans Appeals 
        Improvement Act of 2011; H.R. 1627, Honoring American Veterans 
        Act of 2011; H.R. 1383, Honoring American Veterans Act of 2011; 
        H.R. 1657, To amend title 38, United States Code, to revise the 
        enforcement penalties for misrepresentation of a business 
        concern as a small business concern owned and controlled by 
        veterans or as a small business concern owned and controlled by 
        service-disabled veterans; and, H.R. 802, A bill to amend title 
        38, United States Code, to direct the Secretary of Veterans 
        Affairs to establish a VetStar Award Program

    On May 12, 2011, the House Committee on Veterans' Affairs 
met and marked up six bills which were reported favorably to 
the House: H.R. 1407, as amended, (See H. Rept. 112-82); H.R. 
1484, as amended, (See H. Rept. 112-83); H.R. 1627, as amended, 
(See H. Rept. 112-84, Part 1); H.R. 1383, as amended, (See H. 
Rept. 112-81); H.R. 1657, (See H. Rept. 112-85); and H.R. 802, 
as amended, (See H. Rept. 112-80).
    On May 23, 2011, the House agreed to suspend the rules and 
pass H.R. 1407, as amended, by voice vote, H.R. 1627, by a vote 
of 380-0 (Roll No. 330), H.R. 1383, as amended, by a vote of 
389-0 (Roll No. 331), and H.R. 1657, as amended, by a vote of 
385-1 (Roll No. 332).
    On May 31, 2011, the House agreed to suspend the rules and 
pass H.R. 1484, as amended, by a vote of 419-1 (Roll No. 377)
    On June 1, 2011, the House agreed to suspend the rules and 
pass H.R. 802, as amended, by a vote of 408-11 (Roll No. 383).

                          OVERSIGHT ACTIVITIES

Full Committee--Alleged Violations of the Servicemembers Civil Relief 
        Act

    On February 9, 2011, the full Committee held an oversight 
hearing on mortgage-related violations of the Servicemembers 
Civil Relief Act (SCRA) by JP Morgan Chase Bank. The hearing 
focused on improper foreclosures by JP Morgan on the homes of 
servicemembers.
    The first panel included Captain Jonathon Rowles (USMC), a 
servicemember whose home was improperly foreclosed upon by JP 
Morgan. He was accompanied by attorneys Dick Harpootlian and 
William Harvey. The panel discussed the added stress that the 
improper foreclosures have on the families of servicemembers.
    On the second panel, a bank representative admitted that 
the bank violated the SCRA by improperly charging interest on 
some 4,500 active duty servicemembers' mortgages beyond the 6 
percent cap that is required under the law. The witness also 
admitted that the bank further violated SCRA by improperly 
foreclosing on 18 servicemembers' homes while they were 
deployed.
    The third panel included Hollister K. Petraeus, from the 
Department of the Treasury, and Col. Shawn Shumake of the 
Department of Defense. They testified about the importance of 
SCRA and better ways to protect our servicemembers in the 
future from improper foreclosures. See Alleged Violations of 
the Servicemembers Civil Relief Act, Serial No. 112-1.

Full Committee Hearing--VA Budget Request for FY 2012

    On February 17, 2011, the full Committee held a hearing to 
address the Administration's budget request for the U.S. 
Department of Veterans Affairs.
    The Honorable Eric K. Shinseki, Secretary of the U.S. 
Department of Veterans Affairs, and numerous VSO's provided 
testimony. See U.S. Department of Veterans Affairs Budget 
Request for Fiscal Year 2012, Serial No. 112-2.

Full Committee Hearing--Deconstructing the U.S. Department of Veterans 
        Affairs Construction Planning

    On April 5, 2011, the full Committee held a hearing to 
discuss the transition of the VA construction planning process 
from a five-year to a ten-year plan.
    The hearing focused on examining VA's capital asset 
planning and construction plan detailed in the VA FY2012 
construction authorization budget request. The discussion 
revolved around underutilized and vacant properties; evaluation 
and consideration of alternatives to planned investments; and 
prioritization of new projects and renovations.
    The first panel was made up of the Honorable W. Scott 
Gould, Deputy Secretary, U.S. Department of Veterans Affairs. 
Gould acknowledged that ``on average, VA buildings are more 
than 60 years old.'' Further, Secretary Gould noted that with 
introduction of SCIP (the Strategic Capital Investment Planning 
process), ``VA has instituted a rigorous capital planning 
process that quantifies and prioritizes the need to repair, 
upgrade, dispose of, or replace VA's aging infrastructure and 
address the current and future needs of America's veterans 
within the context of prudent capital investment decision 
making.''
    The second panel included Lorelei St. James, Acting 
Director, Physical Infrastructure Issues, U.S. Government 
Accountability Office, and Raymond Kelly, Director, National 
Legislative Service, Veterans of Foreign Wars of the United 
States. See Deconstructing the U.S. Department of Veterans 
Affairs Construction Planning, Serial No. 112-5.

Full Committee--Sacred Obligation: Restoring Veteran Trust and Patient 
        Safety

    On May 3, 2011, the Full Committee held a hearing entitled, 
``Sacred Obligation: Restoring Veteran Trust and Patient 
Safety,'' regarding the failure to act and haphazard 
notification processes on behalf of the Department of Veterans 
Affairs (VA) concerning medical sanitization processes at major 
VA facilities including those in Miami, Florida; St. Louis, 
Missouri; and Dayton, Ohio.
    Testifying before the Committee were, The Honorable Robert 
A. Petzel, M.D., Under Secretary for Health, Veterans Health 
Administration, U.S. Department of Veterans Affairs; John D. 
Daigh, Assistant Inspector General for Healthcare Inspections, 
Office of Inspector General, U.S. Department of Veterans 
Affairs; Randall B. Williamson, Director, Health Care, U.S. 
Government Accountability Office; Michael Bell, M.D., Deputy 
Director, Division of Healthcare Quality Promotion, Centers for 
Disease Control and Prevention, U.S. Department of Health and 
Human Services; and, Anthony D. Watson, BS, MS, MBA, Director, 
Division of Anesthesiology, General Hospital, Infection 
Control, and Dental Devices, Office of Device Evaluation, 
Center for Devices and Radiological Health, Food and Drug 
Administration, U.S. Department of Health and Human Services.
    The Committee was disconcerted by the apparent lack of 
leadership VA has demonstrated in handling these issues to 
date. See Sacred Obligation: Restoring Veteran Trust and 
Patient Safety, Serial No. 112-10.

Full Committee--Putting America's Veterans Back to Work

    On June 1, 2011, the full Committee met to discuss how to 
put America's veterans back to work. With witnesses from both 
the private and public sectors, the Committee heard testimony 
that focused on measuring the effectiveness of current veteran 
job-training programs, bridging the gap between employers and 
veterans, and how to improve the system to help veterans find 
meaningful employment.
    Testifying before the Committee were Richard A. Hobbie, 
Executive Director, National Association of State Workforce 
Agencies; Jolene Jefferies, Vice President, Strategic 
Initiatives, DirectEmployers Association; Kevin M. Schmiegel, 
Vice President, Veterans' Employment Programs, U.S. Chamber of 
Commerce; Hank Jackson, Interim President and Chief Executive 
Officer, Society for Human Resource Management; Major General 
James D. Tyre, USA, Assistant Adjutant General, Florida Army 
National Guard; Ruth A. Fanning, Director, Vocational 
Rehabilitation and Employment Service, Veterans Benefits 
Administration, U.S. Department of Veterans; The Honorable 
Raymond M. Jefferson, Assistant Secretary, Veterans' Employment 
and Training Service, U.S. Department of Labor; and, 
representative from various veterans service organizations.
    See Putting America's Veterans Back to Work, Serial No. 
112-14.

Full Committee--Bridging the Gap Between Care and Compensation for 
        Veterans

    On June 14, 2011, the full Committee met to discuss mental 
health programs available through the VA on June 14, 2011. The 
ruling by the 9th U.S. Circuit Court of Appeals that cites 
``unchecked incompetence'' by the VA in handling post-traumatic 
stress cases were addressed at the hearing.
    Operation Iraqi Freedom (OIF) Veteran Daniel Hanson 
testified in front of the committee on his personal dealings 
with mental health, and the assistance that VA provided for 
him.
    The second panel included Karen H. Seal, M.D., MPH, 
Department of Medicine and Psychiatry, Veterans Health 
Administration, U.S. Department of Veterans Affairs; Lieutenant 
General James Terry Scott, USA (Ret.), Chairman, Advisory 
Committee on Disability Compensation; and, Sally Satel, M.D., 
Resident Scholar, American Enterprise Institute.
    The third panel included Ralph Ibson from the Wounded 
Warrior Project, Christina Roof of AMVETS, and Antoinette Zeiss 
of the Veterans Health Administration.
    See Bridging the Gap Between Care and Compensation for 
Veterans, Serial No. 112-18.

 ACTIVITIES OF THE SUBCOMMITTEE ON DISABILITY ASSISTANCE AND MEMORIAL 
                                AFFAIRS


                         LEGISLATIVE ACTIVITIES

Subcommittee Markup of H.R. 1407, H.R. 1484, H.R. 1627

    On May 5, 2011, the Subcommittee met and marked up H.R. 
802, Veterans' Compensation Cost-of-Living Adjustment Act of 
2011; H.R. 1484, Veterans Appeals Improvement Act of 2011; and, 
H.R. 1627, To amend title 38, United States Code, to provide 
for certain requirements for the placement of monuments in 
Arlington National Cemetery, and for other purposes.
    H.R. 1407 was forwarded favorably, as amended, to the full 
Committee by voice vote. H.R. 1484 was forwarded favorably, as 
amended, to the full Committee by voice vote. H.R. 1627 was 
forwarded favorably, as amended, to the full Committee, by 
voice vote.

                          OVERSIGHT ACTIVITIES

Site Visit to Scottsdale, AZ

    From January 28-February 2, 2011, minority staff traveled 
to Scottsdale, AZ, to the ``VA Schedule for Rating Disabilities 
(VASRD) Forum: Improving VA's Disability Evaluation Criteria.'' 
The forum was held by the Department of Veterans Affairs, led 
jointly by the Veterans Benefits Administration (VBA) and the 
Veterans Health Administration (VHA). The forum was aimed at 
improving the level and fairness of payments to veterans with 
service-connected diseases and injuries. House and Senate 
Veterans' Affairs Committee staff were invited to attend.

Subcommittee Hearing--U.S. Department of Veterans Affairs FY 2012 
        Budget for the Veterans Benefits Administration, National 
        Cemetery Administration, and Related Agencies

    On March 17, 2011, the Subcommittee held an oversight 
hearing on the U.S. Department of Veterans Affairs FY 2012 
Budget for the Veterans Benefits Administration. The Honorable 
Michael Walcoff, Acting Under Secretary for Benefits, Veterans 
Benefits Administration, U.S. Department of Veterans Affairs 
testified, on behalf of the VBA. He was joined by several VSOs 
as well as other members of the administration. See U.S. 
Department of Veterans Affairs FY 2012 Budget for the Veterans 
Benefits Administration, National Cemetery Administration, and 
Related Agencies, Serial No. 112-5.

Subcommittee Legislative Hearing--H.R. 811, H.R. 1407, H.R. 1441, H.R. 
        1484, H.R. 1627, H.R. 1647, and H. Con. Res. 12

    On May 3, 2011, the Subcommittee held a hearing on H.R. 
811, Providing Military Honors for our Nation's Heroes Act; 
H.R. 1407, Veterans Compensation Cost-of-Living Adjustment Act 
of 2011; H.R. 1441, Reservations Act at Arlington; H.R. 1484, 
Veterans Appeals Improvement Act of 2011; H.R. 1627, To amend 
title 38, United States Code, to provide for certain 
requirements for the placement of monuments in Arlington 
National Cemetery, and for other purposes; H.R. 1647, Veterans 
Choice in Filing Act of 2011; and, H. Con. Res. 12, Expressing 
the sense of Congress that an appropriate site on Chaplains 
Hill in Arlington National Cemetery should be provided for a 
memorial marker to honor the memory of the Jewish chaplains who 
died while on active duty in the Armed Forces of the United 
States. VA, Court of Appeals for Veterans Claims, and various 
VSOs provided testimony. See Legislative Hearing on H.R. 811, 
H.R. 1407, H.R. 1441, H.R. 1484, H.R. 1627, H.R. 1647, and H. 
Con. Res. 12, Serial No. 112-9.

Subcommittee Hearing--An Examination of Poorly Performing U.S. 
        Department of Veterans Affairs Regional Offices

    On June 2, 2011, the Subcommittee held a hearing entitled, 
``How to Improve Underperforming Regional Offices.'' The 
oversight hearing focused on the performance of Department of 
Veterans Affairs regional offices in adjudicating veterans 
claims for disability compensation.
    The Subcommittee, in its oversight capacity, will continue 
to focus on how better to enforce training, quality controls, 
and accountability in the processing of claims by VA. The 
Subcommittee will also look to best practices in other 
governmental agencies and the private sector to fix the 
institutional culture and improve the quality of work at all 
regional offices. See An Examination of Poorly Performing U.S. 
Department of Veterans Affairs Regional Offices, Serial No. 
112-16.

         ACTIVITIES OF THE SUBCOMMITTEE ON ECONOMIC OPPORTUNITY


                         LEGISLATIVE ACTIVITIES

Subcommittee Markup of H.R. 802, H.R. 1383, H.R. 1627, H.R. 1671

    On May 5, 2011, the Subcommittee met and marked up H.R. 
802, a bill to direct the Secretary of Veterans Affairs to 
establish a VetStar Award Program; H.R. 1383, Restoring GI Bill 
Fairness Act of 2011; H.R. 1627, To amend title 38, United 
States Code, to revise the enforcement penalties for 
misrepresentation of a business concern as a small business 
concern owned and controlled by veterans or as a small business 
concern owned and controlled by service-disabled veterans; and, 
H.R. 1671, the Andrew Connolly Veterans' Housing Act.
    H.R. 802 was forwarded favorably to the Full Committee by 
voice vote. H.R. 1383, as amended; H.R. 1627, as amended; and, 
H.R. 1671 were forwarded favorably to the full Committee by 
voice vote.

                          OVERSIGHT ACTIVITIES

Subcommittee Hearing--Veterans' Employment and Training Service's 
        Budget and State Grant Program

    On March 3, 2011, the Subcommittee held an oversight 
hearing on the FY2012 Budget for the Veterans' Employment and 
Training Service.
    Testifying before the Subcommittee were Hon. Raymond M. 
Jefferson, Assistant Secretary, Veterans' Employment and 
Training Service, U.S. Department of Labor; Bonnie Elsey, 
President-Elect, National Association of State Workforce 
Agencies, and Senior Administrative Officer, Minnesota 
Department of Employment and Economic Development; and, 
representatives from various veterans service organizations.
    See Veterans' Employment and Training Service's Budget and 
State Grant Program, Serial No. 112-3.

Subcommittee Hearing--U.S. Department of Veterans' Affairs Vocational 
        Rehabilitation and Employment (VR&E) Program Budget and VR&E 
        National Counseling Contract

    On March 31, 2011, the Subcommittee held a hearing on the 
Department of Veterans Affairs Fiscal Year 2012 budget for the 
Vocational Rehabilitation and Employment (VR&E) program. VR&E 
is a program designed to return disabled veterans to the 
workplace through individualized rehabilitation plans, 
including education training and job placement.
    Representatives from several veterans service organizations 
agreed that while VA budgets have been generous, VA could do 
more to make the VR&E program more accessible to veterans and 
more accountable to their needs. John Wilson, representing the 
Disabled American Veterans noted that, ``VR&E only conducts a 
60-day follow-up on individuals recently employed as a measure 
to determine if they are `fully rehabilitated.' Even more 
disturbing is the fact that if a veteran discontinues VR&E 
services, regardless of the reasoning, VR&E reports it as a 
successful case of `full rehabilitation.''' See U.S. Department 
of Veterans' Affairs Vocational Rehabilitation and Employment 
(VR&E) Program Budget and VR&E National Counseling Contract, 
Serial No. 112-6.

Site Visit to Pensacola, FL; Camp Lejune, NC; Savannah, GA; and 
        Charleston, SC

    From April 18-22, 2011, majority staff traveled and were 
escorted by LCDR Chris Brianas on visits to the Transition 
Assistance Program. The purpose of this trip was to view the 
effectiveness of the Transition Assistance Program at these 
various locations in the Southeast.

Site Visit to San Diego, CA; Phoenix, AZ; and Texas A&M University--
        Central Texas

    On April 25-29, 2011 minority staff visited San Diego State 
University, Arizona State University in Phoenix, and Texas A&M 
University--Central Texas. The site visit provided staff the 
opportunity to address and interact with VR&E staff and provide 
oversight on VetSuccess on Campus pilot sites. Visiting staff 
had the opportunity to hear from VR&E staff about their 
concerns regarding current legislation for education and new 
legislative ideas on how VA can meet their obligations to 
veterans.

Subcommittee Legislative Hearing--H.R. 802, H.R. 1383, H.R. 1657, and 
        H.R. 1671

    On May 3, 2011, the Subcommittee held a hearing on H.R. 
802, to direct the Secretary of Veterans Affairs to establish a 
VetStar Award Program; H.R. 1383, Restoring GI Bill Fairness 
Act of 2011; H.R. 1657, Small Business Enforcement Act; and, 
H.R. 1671, Andrew Connolly Veterans' Housing Act.
    The VA and various VSOs testified on the bills. See 
Legislative Hearing on H.R. 802, H.R. 1383, H.R. 1657, and H.R. 
1671. Serial No. 112-11.

Subcommittee Hearing--Transition Assistance Program and VetSuccess on 
        Campus Program

    On June 2, 2011, the Subcommittee held an oversight hearing 
to gage the effectiveness of programs like TAP, a program to 
help discharging veteran's transition from the military into 
civilian careers.
    The Subcommittee heard testimony from veteran's service 
organizations; the U.S. Department of Veterans Affairs, the 
U.S. Department of Defense, and the U.S. Department of Labor. 
In addition, the Subcommittee received a submission for the 
record from the Student Veterans of America. See Transition 
Assistance Program and VetSuccess on Campus Program, Serial 
112-15.

                ACTIVITIES OF THE SUBCOMMITTEE ON HEALTH


                          OVERSIGHT ACTIVITIES

Subcommittee Hearing--Implementation of Caregiver Assistance: Are We 
        Getting It Right?

    On March 11, 2011, the Subcommittee held an oversight 
hearing on the Department of Veterans Affairs' (VA) 
implementation plan of the caregiver assistance law.
    The Subcommittee heard testimony from VSOs and the U.S. 
Department of Veterans Affairs. In addition, the Subcommittee 
received a submission for the record from the Paralyzed 
Veterans of America and VetsFirst. See Implementation of 
Caregiver Assistance: Are We Getting It Right?, Serial No. 112-
4.

Site Visit Dayton, OH

    On March 11, 2011, at the request of Representative Mike 
Turner, Chairman Miller traveled to Dayton, Ohio, to conduct an 
oversight visit of the Dayton VA Medical Center. The visit was 
in response to the Dayton VA Medical Center's disregard for 
procedures of patient safety.

Site Visit San Antonio, TX

    From May 5-6, 2011, majority staff and Subcommittee 
Chairwoman Buerkle traveled to Brooke Army Medical Center, 
(BAMC) to conduct an oversight visit of the Center for the 
Intrepid, the Warrior Family Support Center, and the Audie L. 
Murphy Veterans Affairs Medical Center in San Antonio, Texas.

Subcommittee Hearing--The Federal Recovery Coordination Program: From 
        Concept to Reality

    On May 13, 2011, the Subcommittee held an oversight hearing 
that reviewed whether the Federal Recovery Coordination Program 
is fulfilling its intended goal of establishing a single point 
of contact for wounded warriors and families; eliminating 
delays and gaps in treatment and services; and reaching across 
Federal agencies to ensure an efficient and smooth 
rehabilitation and transition back to military duty or civilian 
life.
    The Subcommittee heard testimony from veterans service 
organizations; the U.S. Government Accountability Office; the 
U.S. Department of Veterans Affairs; the U.S. Department of 
Defense, and the Central Savannah River Area Wounded Warrior 
Care Projects. In addition, the Subcommittee received 
submission for the record from the Disabled American Veterans, 
Military Officers Association of America, Paralyzed Veterans of 
America, and the Wounded Warrior Project. See The Federal 
Recovery Coordination Program: From Concept to Reality, Serial 
No. 112-13.

Subcommittee Hearing--Preventing Sexual Assaults and Safety Incidents 
        at U.S. Department of Veterans Affairs Facilities

    On June 13, 2011, the Subcommittee on Health held an 
oversight hearing that discussed the recent Government 
Accountability Office reports that many sexual assaults were 
taking place within the Department Veterans Affairs, many of 
which were not reported. The Subcommittee wanted to find out 
how to solve these issues and how to hold the offending parties 
responsible.
    The Subcommittee heard testimony from veterans' service 
organizations, the U.S. Government Accountability Office, the 
U.S. Department of Veterans Affairs, and The American Legion. 
See Preventing Sexual Assaults and Safety Incidents at the U.S. 
Department of Veterans Affairs Facilities, Serial No. 112-17.

     ACTIVITIES OF THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS


                          OVERSIGHT ACTIVITIES

Subcommittee Hearing--Inspect What You Expect: Construction Contracting 
        Practices at the U.S. Department of Veterans Affairs

    On April 13, 2011, the Subcommittee held an oversight 
hearing that focused on the practices used by the Department of 
Veterans Affairs (VA) throughout the contracting lifecycle, 
including the transparency of the use of taxpayer dollars.
    The Subcommittee heard testimony from veterans' service 
organizations and the U.S. Department of Veterans Affairs. See 
Inspect What You Expect: Construction Contracting Practices at 
the U.S. Department of Veterans Affairs, Serial No. 112-8.

Subcommittee Hearing--Reboot: Examining the U.S. Department of Veterans 
        Affairs' Information Technology (IT) Strategy for the 21st 
        Century

    On May 11, 2011 the Subcommittee held an oversight hearing 
for VA to discuss IT improvements following recent increased 
funding and staffing.
    The Subcommittee heard testimony from veterans service 
organizations, U.S. Department of Veterans Affairs, and the 
U.S. Government Accountability Office. See Reboot: Examining 
the U.S. Department of Veterans Affairs' Information Technology 
Strategy for the 21st Century, Serial No. 112-12.

Site Visit Chicago, IL and Spokane, Washington

    On May 16-18, 2011, minority staff traveled to Chicago, IL 
and Spokane, WA to visit the Lovell Federal Health Care Center 
(FHCC) and the Spokane VAMC. FHCC was renamed in October 2010 
from the combined Great Lakes Naval Facility and the North 
Chicago Veterans Affairs Medical Center. The purpose of the 
visit was to examine and re-assess electronic and interoperable 
sharing efforts between VA and Department of Defense. Also to 
gain further information and monitor the progress made by the 
U.S. Department of Veterans Affairs and the U.S. Navy in 
partnering to implement a jointly administered medical facility 
in North Chicago, IL. In support of this effort, staff 
routinely visit the FHCC.

                    HEARINGS AND EXECUTIVE SESSIONS

    (All hearing and executive sessions of the Committee are 
open to the public and held in the Committee hearing room, Room 
334, Cannon House Office Building unless otherwise designated.)
    January 26, 2011.--10:00 a.m. Full Committee Meeting on 
organization for the 112th Congress.
    February 9, 2011.--10:30 a.m. Full Committee held an 
oversight hearing on mortgage-related violations of the 
Servicemembers Civil Relief Act (SCRA) by JP Morgan Chase Bank. 
(Serial No. 112-1)
    February 17, 2011.--9:30 a.m. Full Committee met to adopt 
resolutions to approve Democratic Ranking members, Republican 
Subcommittee membership, and Democratic Subcommittee 
membership.
    February 17, 2011.--9:30 a.m. Full Committee Hearing on 
U.S. Department of Veterans Affairs Budget Request for Fiscal 
Year 2012. (Serial No. 112-2)
    March 1, 2011.--2:00 p.m. Room 345 Cannon House Office 
Building. Full Committee Joint House and Senate Hearing to 
Receive the Legislative Presentation of the Disabled American 
Veterans.
    March 3, 2011.--10:00 a.m. Subcommittee on Economic 
Opportunity hearing on Veterans' Employment and Training 
Service's Budget and State Grant Program. (Serial No. 112-3)
    March 8, 2011.--9:30 a.m. Room 345 Cannon House Office 
Building. Full Committee Joint House and Senate Hearing to 
Receive the Legislative Presentation of the Veterans of Foreign 
Wars.
    March 11, 2011.--10:00 a.m. Subcommittee on Health 
oversight hearing on Implementation of Caregiver Assistance: 
Are We Getting It Right? (Serial No. 112-4)
    March 16, 2011.--9:30 a.m. G50 Dirksen Senate Office 
Building. Full Committee Joint House and Senate Hearing to 
Receive the Legislative Presentations of American Veterans, 
Jewish War Veterans, Military Officers Association of America, 
Gold Star Wives, Blinded Veterans Association, Non Commissioned 
Officers Association, Iraq and Afghanistan Veterans of America, 
Fleet Reserve Association.
    March 17, 2011.--1:00 p.m. Subcommittee on Disability 
Assistance and Memorial Affairs oversight hearing on U.S. 
Department of Veterans Affairs FY 2012 Budget for the Veterans 
Benefits Administration, National Cemetery Administration, and 
Related Agencies. (Serial No. 112-5)
    March 30, 2011.--10:30 a.m. Senate Dirksen Room 106. Full 
Committee Joint House and Senate Hearing to Receive the 
Legislative Presentations of Air Force Sergeants Association, 
Military Order of the Purple Heart, Paralyzed Veterans of 
America, National Association of State Directors of Veterans 
Affairs, Wounded Warrior Project, Vietnam Veterans of America, 
The Retired Enlisted Association, and the American Ex-Prisoners 
of War.
    March 31, 2011.--10:00 a.m. Subcommittee on Economic 
Opportunity hearing on the Department of Veterans Affairs 
Fiscal Year 2012 budget for the Vocational Rehabilitation and 
Employment (VR&E) program. (Serial No. 112-6)
    April 5, 2011.--10:30 a.m. Full Committee organizational 
meeting.
    April 5, 2011.--10:30 a.m. Full Committee hearing on 
``Deconstructing the Department of Veterans Affairs 
Construction Planning.'' (Serial No. 112-7)
    April 13, 2011.--10:00 a.m. Subcommittee on Oversight & 
Investigations hearing called ``Inspect What You Expect: 
Construction Practices at VA.'' (Serial No. 112-8)
    April 14, 2011.--2:00 p.m. Full Committee roundtable on 
``Educating the Financial Service Industry on the 
Servicemembers Civil Relief Act and the VA Loan Guaranty 
Program.''
    May 3, 2011.--8:00 a.m. Room 340 of the Cannon House Office 
Building, Subcommittee on Disability Assistance and Memorial 
Affairs legislative hearing on H.R. 811, H.R. 1407, H.R. 1441, 
H.R. 1484, H.R. 1627, H.R. 1647, and H. Con. Res. 12. (Serial 
No. 112-9)
    May 3, 2011.--10:30 a.m. Full Committee hearing entitled, 
``Sacred Obligation: Restoring Veteran Trust and Patient 
Safety.'' (Serial No. 112-10)
    May 3, 2011.--1:00 p.m. in Room 340 of the Cannon House 
Office Building, Subcommittee on Economic Opportunity 
legislative hearing on H.R. 1383, H.R. 802, H.R. 1657, and H.R. 
1671 (Serial No. 112-11)
    May 5, 2011.--10:00 a.m. Subcommittee on Economic 
Opportunity mark up of H.R. 802, H.R. 1383, H.R. 1657, and H.R. 
1671.
    May 5, 2011.--1:30 p.m. The Subcommittee on Disability 
Assistance and Memorial Affairs mark up of H.R. 1407, H.R. 
1484, and H.R. 1627.
    May 11, 2011.--10:00 a.m. Subcommittee on Oversight and 
Investigations hearing on ``Reboot: Examining the U.S. 
Department of Veterans Affairs Information Technology Strategy 
for the 21st Century.'' (Serial No. 112-12)
    May 12, 2011.--3:00 p.m. Full Committee mark up of H.R. 
1407, H.R. 1484, H.R. 1627, H.R. 1383, H.R. 1657; and H.R. 802.
    May 13, 2011.--10:00 a.m. Subcommittee on Health hearing 
on, ``The Federal Recovery Coordination Program: From Concept 
to Reality.'' (Serial No. 112-13)
    June 1, 2011.--10:00 a.m. Full Committee hearing on Putting 
America's Veterans Back to Work. (Serial No. 112-14)
    June 2, 2011.--11:00 a.m. Subcommittee on Economic 
Opportunity hearing on Transition Assistance Program and 
VetSuccess on Campus Program. (Serial No. 112-15)
    June 2, 2011.--1:30 p.m. Subcommittee on Disability 
Assistance and Memorial Affairs hearing on ``How to Improve 
Underperforming Regional Offices.'' (Serial No. 112-16)
    June 13, 2011.--4:00 p.m. Subcommittee on Health hearing 
titled, ``Preventing Sexual Assaults and Safety Incidents at 
U.S. Department of Veterans Affairs Facilities.'' (Serial No. 
112-17)
    June 14, 2011.--10:00 a.m. Full Committee hearing entitled, 
``Mental Health: Bridging the Gap between Care and Compensation 
for Veterans.'' (Serial No. 112-18)

                          COMMITTEE WEB SITES


        www.veterans.house.gov www.democrats.veterans.house.gov

    The Committee on Veterans' Affairs operates, maintains, and 
updates a website (veterans.house.gov), as well as a minority 
website (democrats.veterans.house.gov) containing comprehensive 
and timely information on Committee activities, Federal 
actions, and other news of interest to veterans. The websites 
contain Committee Information; Committee Resources; Chairman's 
Welcome Message; Committee Schedule; Publications; Committee 
Hearings; Legislation; Recent News; Links to Social Networking 
Pages; Veterans Benefits; Veterans Healthcare; Subcommittees; 
and Live Webcasting. The websites continue to be a resource for 
news and information relating to veterans issues.
                 OVERSIGHT PLAN FOR THE 112TH CONGRESS

                     U.S. House of Representatives

                     Committee on Veterans' Affairs

                   OVERSIGHT PLAN FOR 112TH CONGRESS

    Clause 2(d)(1) of Rule X of the Rules of the House of 
Representatives for the 112th Congress requires each standing 
committee, not later than February 15 of the first session, to 
adopt an oversight plan for the 112th Congress. The oversight 
plan must be submitted simultaneously to the Committee on 
Oversight and Government Reform and the Committee on House 
Administration.
    The following agenda constitutes the oversight plan of the 
Committee on Veterans' Affairs for the 112th Congress. It 
includes areas in which the Committee and its subcommittees 
expect to conduct oversight during this Congress, but does not 
preclude oversight or investigation of additional matters or 
programs as they arise. Because the Committee generally 
conducts oversight through its subcommittees, the plan is 
organized by subcommittee. The full Committee may, at the 
discretion of the Chairman, after consultation with the Ranking 
Democratic Member, conduct any of the oversight activities 
planned by the subcommittees.
Subcommittee on Disability Assistance and Memorial Affairs
    The Subcommittee will focus on policy for compensation for 
veterans' disability claims, eligibility and upkeep on all 
National Cemeteries and the National Cemetery Administration, 
and VA insurance and pension programs. Goals include improving 
the timeliness, accuracy, and effectiveness of disability 
benefits, and ensuring that veterans are appropriately 
memorialized. To that end, the DAMA subcommittee will conduct 
oversight hearings, staff visits, and use Inspector General and 
Government Accountability Office reports and studies.
    1. Modernizing the Department of Veterans Affairs (VA) 
Disability Rating Schedule and Benefits Claims Processing 
System--The Subcommittee will perform rigorous oversight over 
ongoing efforts to modernize VA's disability benefits claims 
process, which includes the implementation of the Veterans 
Benefit Management System (VBMS). The VBMS consists of several 
different pilot programs that must be synthesized into one 
coherent process. A primary element of VBMS is the 
digitalization of claims files and electronic transfer of 
information.
    2. Appeals--The Subcommittee will continue to monitor the 
compensation and pension claims appeal process at the Board of 
Veterans Appeals (BVA), the Appeals Management Center (AMC) and 
the Court of Appeals for Veterans Claims (CAVC).The 
Subcommittee plans to focus on exploring avenues to simplify 
the current appeal process, increase accountability and reduce 
avoidable remands.
    3. Presumptions--The Subcommittee will continue to examine 
the process for establishing presumptions of service-connection 
for the purpose of providing disability benefits compensation, 
focusing on veterans from both current and past conflicts.
    4. Examining Underperforming VA Regional Offices (VAROs)--
Several VAROs produce chronically low efficiency and accuracy 
rates in the disability benefits claims process. Such offices 
are typically associated with larger metropolitan areas that 
also have high employee turnover rates as compared to parts of 
the country where the cost of living is lower. Consideration 
should be given to consolidating VAROs and reassigning claims 
work to locations that have consistently proven to be able to 
process veterans' claims with efficiency and accuracy.
    5. Insurance Matters--The Subcommittee will examine the 
insurance programs under the jurisdiction of VA to ensure the 
provision of the proper level of indemnification and 
appropriate categories of coverage. Additionally, the 
Subcommittee will review the overall operation of these 
insurance programs and VA's use of Retained Asset Accounts for 
beneficiaries' settlements.
    6. National and Overseas Cemeteries--The Subcommittee will 
examine the immediate and long-term needs of the VA National 
Cemetery Administration (NCA) and the American Battle Monuments 
Commission (ABMC) to provide burial or commemoration to 
America's fallen heroes. Additionally, the Subcommittee will 
closely monitor the overhaul of operations at Arlington 
National Cemetery; particularly its record keeping system.
    7. Information Technology--The Subcommittee will continue 
to review current information technology systems and software 
applications being used by the VBA with a focus on VBMS. The 
Subcommittee will explore the applicability of rules-based and 
other expert systems to automate the adjudication of disability 
claims through VBMS.

Subcommittee on Economic Opportunity

    The Subcommittee will have a major focus on programs that 
promote veterans' employment and ways to reduce unemployment 
among veterans, while seeking ways to ensure seamless 
transition to civilian life. To that end, the Economic 
Opportunity Subcommittee will conduct oversight on the 
following topics through the use of hearings, staff-to-staff 
meetings, site visits and Government Accountability Office 
studies and reports.
    1. Department of Labor's Veterans' Employment and Training 
Service (VETS)--In evaluating these programs, the Subcommittee 
will focus on interagency cooperation between VETS and the 
Department of Veterans Affairs Vocational Rehabilitation and 
Employment (VRE) program to assess the effectiveness of 
combined efforts to place disabled veterans. The subcommittee 
will also take a detailed look at the performance of the State 
Grant Program with an emphasis on promoting more consistent 
results. The Subcommittee continues to be concerned about the 
usefulness and relevance of the Transition Assistance Program 
(TAP) for those leaving military service. The Subcommittee will 
continue to conduct on-site visits to observe TAP classes and 
to gauge revision and deployment of the TAP curriculum.
    2. Vocational Rehabilitation and Employment--VA's 
Vocational Rehabilitation and Employment (VR&E) program offers 
services and assistance with the mission of enabling veterans 
with service-connected disabilities to obtain and maintain 
suitable employment, and to enable certain other disabled 
veterans to achieve independence in daily living. The 
Subcommittee will examine VR&E's recent efforts to implement 
its 5-track program throughout the 57 regional offices.
    3. Employment and Self-Employment Opportunities for 
Veterans--The Subcommittee will review the efforts of the 
Department of Labor and VA in facilitating employment 
opportunities to veterans, with a focus on recently separated 
service members returning from Iraq and Afghanistan, including 
demobilizing Reserve and National Guard personnel.
    4. Servicemembers Civil Relief Act (SCRA)--Formerly called 
the Soldiers and Sailors Civil Relief Act, SCRA provides a wide 
range of protections for veterans and deploying service 
members. These include protections for employment, healthcare, 
and financial transactions such as leases and mortgages. SCRA 
underwent a major overhaul in 2003 with minor revisions since 
then. As more active duty and Reservists and National Guard 
members are activated and return to civilian life and with the 
economic downturn, protections under SCRA is more relevant and 
needed. The Subcommittee will continue to provide oversight 
over the SCRA, with emphasis upon violations by financial 
institutions overcharging on mortgages, improperly foreclosing, 
and in other manners depriving military families of the 
protections afforded under SCRA.
    5. GI Bill--The Subcommittee plans to continue monitoring 
VA's efforts to implement the Post-9/11 Veterans Educational 
Assistance with an emphasis on simplifying administration of 
the benefit as well as its relationship to other Title 38 
education benefits. The Subcommittee will also examine ways to 
improve the delivery of veterans' educational benefits.
    6. Reserve Component Transition Assistance and the 
Uniformed Services Employment and Reemployment Rights Act 
(USERRA)--The Subcommittee will continue to monitor state 
transition programs with an emphasis on ensuring service 
members understand their rights under USERRA. USERRA provides a 
broad range of employment rights and responsibilities for 
veterans and employers. The Subcommittee will assess the 
effectiveness of USERRA with special emphasis on employers' 
willingness to hire National Guard and Reserve members and 
employment-related issues related to returning to the workforce 
following activation as well as issues related enforcement.
    7. State Approving Agencies (SAA)--The Subcommittee is 
concerned that the SAA efforts may be more productive in 
ensuring compliance with VA financial policies and procedures 
as well as preventing fraud and questionable recruiting 
practices. Therefore, the Subcommittee will examine how State 
Approving Agencies can be streamlined, reduce areas of 
responsibility, become more accountable for expenditures and 
reduce multiple agency overlap in services to better improve 
education benefits for veterans.
    8. Information Technology--VBA currently uses several 
information technology applications to assist administration of 
its education and vocational rehabilitation and employment 
programs. Despite this basic level of automation, significant 
backlogs persist. The Subcommittee will assess opportunities to 
increase the ability of rules-based systems to improve 
timeliness, accuracy and consistency as a way to decrease the 
backlogs.
    9. Small Business Contracting Goals for Veteran and Service 
Connected Disabled Business Owners--Overall, the Federal 
government continues to fall short in meeting the three percent 
procurement goal for service disabled veteran-owned small 
business (SDVOSB). The VA now sets the example for Federal 
agencies and the Subcommittee will explore ways to export VA's 
success to the rest of the federal government. In 2006, 
Congress passed Public Law 109-461 which provided SDVOSB and 
veteran-owned small businesses (VOSB) several advantages in 
contracting with VA as well as additional tools for VA to 
contract with SDVOSB and VOSB. The Subcommittee will also 
continue its oversight of VA's progress implementing the small 
business provisions of P.L. 109-461.
    10. VA Federal Procurement, Contract Bundling, and Non-
Competitive Contracts--VA has the second largest Federal 
procurement budget after DoD. There is a concern that large 
prime contractors generally fail to comply with their small 
business subcontract plans that incorporate veteran-owned 
businesses as subcontractors. Despite the requirements of 
sections 501 and 502 of Public Law 109-461, to date, the VA has 
imposed no penalty on any company for failing to execute their 
small business plan or to debar businesses who fraudulently 
claim veteran-owned and controlled status. The Subcommittee 
will examine what the Office of Federal Contractor Compliance 
and SBA is doing to ensure that all contractors are in 
compliance with the small business goals. The Subcommittee will 
also examine the effectiveness of the Center for Veterans 
Enterprise in meeting these statutory requirements.
    11. VA Loan Guaranty Program--The Subcommittee will review 
existing veterans' loan programs to determine whether existing 
laws, regulations and VA initiatives are sufficient to reduce 
foreclosures on veteran-owned homes. The Subcommittee will 
include the views of the mortgage industry and other real 
estate experts to see if improvements can be made to the 
existing system including additional protections for 
mortgagors. The Subcommittee will also review VA operations in 
the secondary market.
    12. Paralympics--To foster the use of sports as part of 
rehabilitation, Public Law 110-389 authorized VA to provide a 
grant to the US Paralympic program to promote development of 
adaptive sports programs for disabled veterans from the 
grassroots to elite competitive levels. The Subcommittee will 
review VA's Paralympics grant program with an emphasis on the 
results of grassroots adaptive sports programs.
    13. Veterans' Priority of Hiring by Federal Contractors--
The Subcommittee remains concerned that there is no systematic 
way to enforce existing law and about the roles of VETS and the 
Office of Federal Contract Compliance in assuring compliance 
with the law. Therefore, the Subcommittee will review the 
effectiveness of current law with a view towards enforcement.

Subcommittee on Health

    The Subcommittee will exercise legislative, oversight, and 
investigative jurisdiction over the Veterans Health 
Administration (VHA) including medical services, medical 
support and compliance, medical facilities, medical and 
prosthetic research, and major and minor construction. Goals 
include maximizing the effectiveness of health care services 
delivered, while identifying ineffective spending to achieve 
the proper prioritization of limited taxpayer dollars.
    1. Access to Care--The Subcommittee will examine the means 
through which VHA provides care to veterans, the various ways 
in which veterans' access care and opportunities to expand and 
improve the provision of high quality care through non-
traditional delivery methods, including the use of local health 
care providers closer to the veteran's home. Particular 
attention will be paid to meeting the unique needs of veterans 
whose access to traditional medical care is limited by 
geography, disability, or other challenges.
    2. Fee Basis Care Expenditures--The Subcommittee will 
vigorously evaluate what changes are needed in VA's complex 
organizational structure in order to effectively and 
efficiently execute its fee basis care program and the need for 
transformation to ensure accountability and adequate management 
and oversight controls. In FY 2009, VA spent approximately $5.3 
billion dollars (12% of its total medical care budget) to 
purchase health care services from non-VA entities including 
other government agencies, affiliated universities, community 
hospitals, nursing homes, and individual providers. In 2009, 
the VA Office of Inspector General released an audit of VHA's 
non-VA outpatient fee care program which uncovered about $1.126 
billion in overpayments over five years. The IG concluded that 
organizational structure changes were needed to make certain 
that fee basis care is properly authorized, justified and met 
with consistent, reasonable, and proper payments.
    3. Virtual Lifetime Electronic Record (VLER)--The 
Subcommittee will aggressively evaluate progress being made by 
VA and DOD in the development of a single electronic, bi-
directional, standards-based medical record to track service 
members from boot camp through their lives as veterans. Both VA 
and DOD serve the same patient population at different times 
yet operate separate health records systems and lack the 
ability to readily share data, necessitating costly duplication 
that impedes the safety, quality, and effectiveness of health 
care delivery.
    4. Mental Health and Combat Related Stress--The 
Subcommittee will review VHA's current mental health programs, 
including those for Post Traumatic Stress, Substance Use 
Disorder and Suicide Prevention. Among the many issues the 
Subcommittee will focus on are: the implementation of the 
mental health strategic plan; veteran patient compliance with 
completing recommended treatment; improving outcomes; 
overcoming stigma; conducting outreach; assessing future demand 
for care; and the allocation and tracking of mental health 
funds.
    5. Women Veterans--Women are the fastest growing segment of 
the veteran population. The Subcommittee will evaluate VHA's 
progress in overcoming barriers and other factors associated 
with health care quality and satisfaction for women veterans. 
Among the many issues the Subcommittee will focus on are the 
implementation of provisions in Public Law 111-163 aimed to 
assist women veterans, including readjustment and child care 
pilot programs and the activities and recommendations of the 
Advisory Committee on Women Veterans.
    6. Support for Families and Caregivers--The Subcommittee 
will examine implementation of Public Law 111-163, which 
requires VA to establish a comprehensive program of assistance 
for family caregivers and strengthens statutory authority to 
provide support, counseling and mental health services for 
family members of a recovering veteran. It is widely recognized 
that one of the strongest factors that help warriors in their 
recovery is a high level of support from loved ones.
    7. Capital Asset Management--The Subcommittee will closely 
monitor the management of VHA's vast infrastructure which 
includes more than 6,200 buildings on 300 sites across 32,000 
acres. Many of VA's facilities are more than 50 years old and 
are no longer suited for the delivery of 21st century health 
care. Further, underutilized and vacant VHA properties cost 
taxpayers at least $175 million annually. The Subcommittee will 
identify options to more effectively use VA properties through 
sharing opportunities with the Department of Defense (DOD); 
collaboration with medical affiliates; and the reuse of excess 
property through enhanced use leasing or disposal.
    8. VA and DOD Health Resource Sharing--The Subcommittee 
will identify greater opportunities for VA and DOD health 
resource sharing. Enhanced sharing between VA and DOD would 
improve health care quality, access, and efficiency by allowing 
for the pooling of resources and better performance management 
and oversight. However, organizational and culture barriers 
have historically thwarted sharing initiatives. Among the 
issues the Subcommittee will explore are the joint: procurement 
of pharmaceuticals; medical/surgical supplies; use of medical 
equipment and services; and construction.
    9. Specialized Services for Wounded Warriors--The 
Subcommittee will evaluate VHA's specialized care programs to 
ensure consistent and coordinated state-of-the-art care system-
wide through the use of the latest technology and best 
practices. Among the many issues the Subcommittee will evaluate 
is the continuum of care for veterans with amputations, 
Traumatic Brain Injury (TBI), Blind Rehabilitation, and Spinal 
Cord injury.
    10. Seamless Transition--The Subcommittee will actively 
review the transition of a service member from active duty to 
veteran status. The Subcommittee will focus on the accuracy and 
timeliness of VA's assessment of the health status of 
separating service members; DOD force protection practices and 
policies; the Post-Deployment Health Re-assessment tool; 
streamlining the enrollment process for VA health care.
    11. Veterans Integrated Service Networks (VISNs) 
Structure--The Subcommittee will examine the current VISN 
structure and ways to realign the VISNs to better manage 
performance, promote innovation, and establish uniformity of 
health care services and practices throughout the system. The 
VISN system has remained in place for fifteen years, with the 
only structural change taking place in 2002 when VISN 13 and 14 
were integrated and renamed VISN 23. With the rapid application 
of new information technology that has revolutionized the way 
we live, interact, and conduct business, the Subcommittee will 
focus on opportunities to restructure the VISNs toward the goal 
of more patient-centered care.
    12. Medical and Prosthetic Research Program--The 
Subcommittee will examine the value of VA research with respect 
to injuries and illnesses related to military service and the 
acceleration of discoveries and applications, especially for 
neurotrauma, sensory loss, amputation, polytrauma, and 
prosthetic needs. Among the issues the Subcommittee will also 
focus on are: the adequacy of research space and equipment and 
the development of a clearinghouse designed to promote VA and 
DOD researchers awareness collaboration and joint publication 
of research.
    13. Long-Term Care--The Subcommittee will evaluate current 
programs and planning for institutional and non-institutional 
long term care. The Subcommittee will review innovative ways to 
improve the age-appropriateness of the delivery of long-term 
care services, improving and increasing home and community-
based care options, and the development and implementation of a 
single, structured, and uniformly applied policy for care 
provided in VA facilities, state veterans homes and contract 
community nursing homes as well as rectifying issues with the 
implementation of section 211 of Public Law 109-461 which 
requires VA to pay State Homes a new rate for mandatory 
veterans known as the ``70% program.''
    14. Homeless Veterans Programs--The Subcommittee will 
assess the use, effectiveness, and any duplication of the 
specialized programs to assist homeless veterans and examine 
ways to strengthen VA's ability to help homeless veterans 
regain their independence and prevent those at risk from 
becoming homeless.
    15. Patient Aligned Care Teams (PACT)--The Subcommittee 
will provide aggressive oversight of the impact and 
effectiveness of a new initiative VA is implementing referred 
to as PACT which is intended to increase access, coordination, 
communication, and continuity of care by allowing patients to 
have a dedicated primary care team and a more active role in 
their health care.
    16. Pain Management--The Subcommittee will examine VHA's 
pain management strategy. Managing pain is an increasingly 
significant issue, especially for recently returning combat 
veterans presenting with a wide range of physical and mental 
health problems, including musculoskeletal ailments and post 
traumatic stress. The Subcommittee will focus on: pain 
awareness, education, intervention; utilization of best 
practices for the continuum of acute and chronic pain; and the 
challenge of prescription drug diversion and abuse.
    17. Data Based Performance Management and Health Care 
Value--The Subcommittee will review VHA's performance 
management processes to ensure that appropriations are 
responsibly utilized for veterans health care programs. Key to 
improving veteran satisfaction and access to high quality care 
is evaluating and comparing with a data-based performance 
management tool precisely how care is being provided at each 
facility within the VA health care system and the cost and 
quality of that care.
    18. Wounded Warriors and the Federal Recovery Coordinator 
Program--The Subcommittee will evaluate the effectiveness of 
the Federal Recovery Coordinator program and the potential for 
the elimination of overlap of supplemental VA and DOD case 
management and care coordination programs in the treatment and 
continuum of care for wounded warriors with amputations, 
Traumatic Brain Injury (TBI), Spinal Cord injury, impaired 
vision and other serious and severe injuries.
    19. Veterans Justice Outreach (VJO) Program--The 
Subcommittee will evaluate VA support of the VJO program. The 
VJO program was launched in 2009 to work with local justice 
system partners to provide outreach and alternative treatment 
for justice-involved veterans, including Veterans' courts, drug 
courts, and mental health courts. Among the many issues the 
Subcommittee will focus on are plans for the expansion of full-
time VJO specialist positions at VA medical centers.
    20. Health Administration Center (HAC) Programs--The 
Subcommittee will examine the management and needed actions to 
improve programs administered by the HAC, including the 
Civilian Health and Medical Program of VA (CHAMPVA) and the 
Foreign Medical Program.
    21. Health Care Personnel Practices and Procedures--The 
Subcommittee will review VHA employee recruitment and retention 
issues. VHA employs over 226,000 individuals and since 2005 has 
hired about 6,000 new mental health professionals. Among the 
many issues the Subcommittee will assess are: current and 
future workforce requirements; human resource policies; 
employee training and education; and the establishment of 
meaningful and enforceable performance standards and outcome 
measures.
    22. VA Partnerships With Community Organizations--The 
Subcommittee will examine the relationship, role and 
development of community programs in partnership with VHA to 
meet the needs of veterans and their families in their home 
communities. While the responsibility for guiding a veteran's 
transition to home life falls with the VA, community-based 
groups are playing a key role in helping veterans transition to 
civilian life. This is especially true for citizen-soldiers in 
the National Guard and Reserve who often lack access to a 
supportive military environment. The Subcommittee will focus on 
fostering communication, education and collaboration with 
community organizations and providers.

Oversight and Investigations

    The subcommittee will conduct oversight and investigations 
over veterans' matters generally, and over such matters as may 
be referred to the subcommittee by the Chairman of the full 
Committee for its oversight or investigation and for its 
appropriate recommendations. Goals include the identification 
of wasteful, duplicative, and ineffective spending; improving 
operations to ensure effectiveness in the delivery of services, 
and partnering with VA in its efforts to improve the lives of 
veterans, via expenditure of finite and limited taxpayer 
dollars.
    1. Fully Interoperable Electronic Personal Health 
Information between VA & DoD--Congress has mandated VA-DOD 
development of interoperable health records or systems. The 
subcommittee will evaluate timelines and monitor progress in 
keeping with Congressional goals and the President's 
expectation of electronic health records for veterans.
    2. VA's Acquisition Process--VA spends approximately $17 
billion annually for pharmaceuticals, medical and surgical 
supplies, prosthetic devices, information technology, 
construction, and services. VA faces major challenges to 
implement a more efficient, effective, and coordinated 
acquisition program. The subcommittee will examine contracting, 
logistics, and development of control systems at VA to ensure 
that veterans' needs are met and the taxpayers' interests are 
protected in this multi-billion dollar industry.
    3. Quality of Care and Patient Safety Issues--The Committee 
must monitor several quality of care and patient safety issues, 
including: the sterilization of reusable medical equipment, and 
the quality of care for veterans receiving VA long-term care 
services. There is a need for continued watchfulness to ensure 
that the proper corrective actions are occurring, as well as to 
determine whether similar problems are being identified and 
disclosed in an appropriate manner.
    4. Veterans Records--The National Archives and Records 
Administration (NARA), the National Personnel Records Center 
(NPRC), the Records Management Center (RMC) and various 
military service locations maintain the military personnel 
records of discharged members of the Armed Forces. The 
subcommittee will examine the security of veteran records 
maintained throughout to ascertain the protection of personal 
identifying information of our nation's veterans, as well as 
the transmittal of these records to VA in order to assist 
veterans in the claims process and to help reduce the claims 
backlog.
    5. VA Information Technology Programs--The subcommittee 
will continue its oversight of VA's IT programs to review 
progress being made with implementation of its integrated 
enterprise architecture plan. This includes VA's efforts to 
improve its internal and external cyber security, specifically 
the Government Configuration Baseline, including mandatory data 
encryption, as well as review the effectiveness of the VA's 
Project Management Accountability System (PMAS) program and the 
new T-4 information technology contracting process, which is a 
five-year Indefinite Delivery/Indefinite Quantity (IDIQ) 
Multiple Award Task Order contract with a program ceiling of 
$12 billion.
    6. Enhanced Land Leases and Divestment of Federal 
Property--The subcommittee will review the adequacy of internal 
controls related to leasing or selling of Department of 
Veterans Affairs assets and assess the tangible benefit to 
taxpayers. Additionally, the subcommittee will review the use 
and condition of historic properties owned and operated by VA, 
and whether the Department can sustain the costs and 
maintenance involved with these properties in the future.
    7. VA/DOD Benefits Delivery at Discharge Program--The 
subcommittee will evaluate DOD's utilization of a single 
examination that meets both military services' separation 
requirements and VA's disability compensation criteria. The 
subcommittee will also scrutinize VA's efforts to co-locate 
Veterans Benefits Administration and Veterans Health 
Administration personnel involved in compensation and pension 
claims processing to provide more efficient one-stop claims 
processing centers. Furthermore, the subcommittee will examine 
the effectiveness of the implementation of the integrated DoD/
VA Disability Evaluation System (DES).
    8. Human Subjects Protection Program--The subcommittee will 
hold VA accountable for violations of the Federal Policy for 
the Protection of Human Subjects. Moreover, previous violations 
must be corrected and future problems avoided by properly 
utilizing management techniques and pre-inspection checklists.
    9. Seamless Transition--The subcommittee will address 
schedules and delays related to VA and Department of Defense 
(DoD) efforts to ensure that the transition between the two 
departments is seamless and responsive to the needs of 
veterans. At a minimum, the subcommittee will examine issues 
such as the progress of the Yellow Ribbon Reintegration Program 
and the DoD's referral of discharged Guard and Reserve 
personnel to VA's dental program for their follow-up dental 
care.
    10. Evaluating Management Efficiencies--VA plans to achieve 
specified savings each fiscal year by implementing various 
procedures to achieve cost avoidance. The subcommittee will 
examine the relationship between projected savings and 
demonstrated savings and further assess the impact on the 
delivery of quality services.
    11. Medical Care Collection Fund--The subcommittee will 
scrutinize VA collection efforts to include a common sense 
approach to waivers, demonstrations, consolidations outsourcing 
initiatives and recoupment as appropriate.
    12. Modernize Financial Management--After the failure of 
the CoreFLS financial and logistics system and Financial and 
Logistics Integrated Technology Enterprise (FLITE), the VA has 
a poor track record of resource waste and no viable product to 
modernize its financial management system. The subcommittee 
will scrutinize the VA's strategic asset management system and 
replacement/improvement plan, including the cost of non-
implementation of previous programs.
    13. VA's Fourth Mission, Emergency Management 
Capabilities--The subcommittee will examine VA's role in 
responding to natural or man-made disasters in support of VA 
and DoD contingencies, the Federal Response Plan, Radiological 
Emergencies, the Nation Disaster Medical System and in 
providing Continuity of Government/Operations. The intent is to 
ensure the VA can perform its ``Fourth Mission'' in accordance 
with strategic goals.
    14. Post-Traumatic Stress Disorder (PTSD) Testing--The 
subcommittee will evaluate VA's current PTSD testing program 
with an eye on non-vetted or local exams that are used to 
determine a veteran's eligibility for PTSD related assistance 
in direct contradiction to established national standards.
    15. VA Senior Executive Service Bonuses--The committee will 
scrutinize VA's bonus practices for its Senior Executive 
Service employees in comparison to performance, productivity, 
and the goal of Congress to decrease the cost of government for 
the taxpayer.
    16. VA Inspector General--The subcommittee will review the 
VAOIG recommendation and implementation system for efficiency, 
accuracy, and follow-up. Moreover, it will pursue availability 
of resources, accountability and methodology to improve 
outcomes and restore veterans' confidence in the system.
    17. Office of Federal Contract Compliance Programs--The 
Office of Federal Contract Compliance Programs (OFCCP) enforces 
and administers the Vietnam Era Veterans' Readjustment 
Assistance Act of 1974 (VEVRAA). Since the Federal government 
awards prime contractors worth approximately $200 billion per 
year, the subcommittee will examine OFCCP's recent 
investigatory and enforcement actions related to VEVRAA and 
address issues where appropriate.
    18. Competitive Sourcing and Alternative Management 
Systems--VA is implementing the President's Management Agenda 
and Office of Management and Budget Directives through 
competitive sourcing and alternative management systems. The 
subcommittee is interested in the factual basis for conduct of 
this program and the organizational benefits yielded.
    19. Energy Sustainability and Efficiency--The subcommittee 
will conduct oversight on VA's progress in moving forward with 
sustainability and energy efficiencies at the various VA 
locations to include VA Medical facilities, National 
Cemeteries, and other facilities. The examination will include 
a focused look at how VA has spent funding authorized to 
enhance sustainability and efficiency programs and whether the 
funding is being well spent.
    20. Consolidated Patient Accounting System (CPAC)--The 
subcommittee will conduct oversight on VA's consolidation of 
VHA's business office functions into seven regional centers. 
The examination will focus on the transformation of VHA billing 
and to determine how closely VHA is aligned with industry best 
practices.
    21. Office of Resolution Management for EEO Complaints--
Public Law 105-114, the Veterans Benefits Act of 1997, included 
a requirement that the Department of Veterans Affairs take 
actions to improve its equal employment opportunity program and 
created the Office of Resolution Management. The subcommittee 
will examine the effectiveness of the Office of Resolution 
Management and its resources in relation to its function as 
intended by Congress.
    22. Small Business Contracting Goals for Service Connected 
Disabled Business Owners--The subcommittee will probe the poor 
results related to small business contracting goals with 
service-connected disabled veteran small business owners and 
pursue corrective measures to meet or exceed the VA's own 
goals.
    23. Credentialing and Screening of VA Healthcare 
Employees--The subcommittee will examine VA's implementation of 
Government Accountability Office (GAO) recommendations that 
indicated serious flaws in screening professional credentials 
of VA healthcare practitioners.
    24. Medical Recruitment, Retention and Staffing--The 
subcommittee will review efforts being made by the VA to 
recruit, hire and train medical staff. Of particular interest 
will be any recent contracts to reintegrate and retain veterans 
at all levels in VA.
    25. Laboratory and Clinical Select Agent Security--The 
subcommittee will examine VA Level 3 Laboratories' compliance 
with laws and regulations governing biosafety and biosecurity 
(including radiological and chemical agents) throughout their 
research laboratories and Medical Centers.
    26. Fiduciary Program--The subcommittee will analyze the 
continued delays, veteran and family complaints and the 
inadequacy of VA's fiduciary system as reported by the VAOIG 
April 2010 and seek expeditious corrective action and 
improvement.
 REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS' 
AFFAIRS, SUBMITTED PURSUANT TO SECTION 301 OF THE CONGRESSIONAL BUDGET 
            ACT OF 1974, ON THE BUDGET PROPOSED FOR FY 2012

                              ----------                              --
------------------

                           House of Representatives
                            Committee on Veterans' Affairs,
                                    Washington, DC, March 18, 2011.
    Dear Chairman Ryan and Ranking Member Van Hollen: Pursuant 
to section 301(d) of the Congressional Budget Act of 1974 and 
House Rule X, clause 4(f), and with the approval of the 
undersigned Members of the Committee on Veterans' Affairs 
(Committee), we write to provide our Views and Estimates on the 
fiscal year (FY) 2012 budget for veterans' programs within the 
Committee's jurisdiction. Our comments will focus on programs 
and services administered by the U.S. Department of Veterans 
Affairs (VA) and the Administration's Fiscal Year 2012 budget 
request for VA.

                            GENERAL COMMENTS

    In preparing the Committee Views and Estimates, we are 
mindful of the enormous challenges threatening our Nation's 
security. Deficits and resulting debt of staggering proportions 
have hastened the need for difficult choices to be made across 
Government. As was stated in the final report of the 
President's National Commission on Fiscal Responsibility and 
Reform, ``[t]he problem is real. The solution will be painful. 
There is no easy way out. Everything must be on the table. And 
Washington must lead.''
    We are also mindful of our obligation to those who continue 
to defend America against her enemies. For nearly a decade, we 
have remained a Nation at war, a war fought by less than one 
percent of our citizenry. The demands placed on those serving 
in our Armed Forces--multiple deployments, the stress of 
extended separation from loved ones, the physical and 
psychological wounds of war, and the often painful readjustment 
to civilian life in the midst of economic uncertainty--have 
never been greater. Our Nation's servicemembers continue to do 
what their country asks of them, enduring hardships that few of 
us could fathom. They are the reason this Committee exists; it 
is now our privilege and duty to serve them and all who have 
gone before them.
    These challenges--fulfilling our commitments to veterans 
and getting our fiscal house in order--need not be opposed to 
each other. We must never balance the budget on the backs of 
veterans, but we also cannot allow limited resources to be used 
ineffectively. Veterans are not only beneficiaries of VA's 
health and benefits programs, they are also taxpayers. They 
want meaningful employment for themselves and their loved ones. 
Like all of us, they, too, have a tremendous stake in America's 
economic prosperity, a stake they have invested in up front 
through their honorable service. We believe no constituency is 
better suited to help guide us through these turbulent times.

                      OVERALL SPENDING PROJECTIONS

Discretionary Spending

    The President's fiscal year (FY) 2012 VA budget request for 
discretionary programs is $61.9 billion, including an estimated 
$3.1 billion in estimated medical collections (receipts from 
billing insurance companies and collecting copayments for care 
associated with non service-related disabilities). Consistent 
with Public Law 111-81, the Administration has also requested a 
$55.832 billion advance appropriation for VA medical care for 
fiscal year 2013, including an estimated $3.291 billion in 
medical collections.
    VA's discretionary budget from FY 2003 through FY 2011 
(assuming enactment of full-year appropriations for remaining 
VA accounts as outlined in H.R. 1) has increased approximately 
115 percent, with annual percentage increases frequently 
exceeding double digits. Thus, given that the President's 
request for FY 2012 represents, roughly, a 3.5 percent annual 
increase, it can certainly be characterized as a more modest 
blueprint than we have seen in recent years. During the 
Committee's hearing in February on VA's budget request, VA 
Secretary Shinseki assured the Committee that the 
Administration's budget request was sufficient to meet VA's 
obligations. The Committee accepts VA's characterization of its 
request but will be carefully monitoring VA's fiscal condition 
over the course of the upcoming fiscal year.
    The more important question is whether the President's 
request is sufficient to meet our obligations to veterans. On 
the whole, we believe it is. We support the President's request 
for overall discretionary spending for FY 2012 and the FY 2013 
advance for medical care, although we do recommend shifting 
resources among certain accounts as we will outline below. We 
also have serious concerns with new accounting mechanisms in 
the President's budget that makes it difficult to adequately 
judge the actual resource needs of VA's health care system. We 
will discuss those concerns below.

Mandatory Spending

    The President requests $70.312 billion for VA mandatory 
spending programs, an increase of 5.5 percent over FY 2011 
levels. VA mandatory spending has increased 105 percent from FY 
2003 through FY 2011, an increase largely attributable to 
growth in the overall disability compensation rolls and rising 
average disability levels, as well as the creation of the Post-
9/11 GI Bill education benefit. The Committee notes that for FY 
2012, 83 percent of the amount requested for mandatory spending 
is attributable to compensation and pension payments.
    Although we must be sensitive to the constituency that VA 
mandatory spending programs serve, we feel compelled to 
highlight that both Republican and Democratic Administrations 
and Congresses have, in the past, joined in calling for 
restraint in the growth of VA entitlement spending in an 
overall effort to reduce Federal budget deficits. In the same 
spirit, and with a sober understanding of the fiscal crisis our 
country is facing, we believe the time is right to look at past 
reconciliation measures reported from the House and Senate 
Veterans' Affairs Committees to serve as guides for any future 
mandatory spending restraint measures the Budget Committee may 
require. In past years, veterans' organizations only supported 
these restraint efforts to the extent they were extraordinarily 
sensitive to the veterans who would be affected by them and 
packaged as part of an overall, concerted effort to control 
entitlement growth across the Federal Government. We believe 
veterans will, as they have in the past, rise to the task if 
such an undertaking is again asked of them.

                         VETERANS' MEDICAL CARE

    For FY 2012, the President's budget requests $50.851 
billion (exclusive of estimated medical collections) for the 
three VA medical care appropriation accounts. The request is 
$240 million higher than what the Administration requested one 
year ago, when it submitted its FY 2012 advance appropriation 
request for VA medical care, and is the same amount for FY 2012 
VA medical care contained in H.R. 1, legislation passed by the 
House of Representatives on February 19, 2011. The 
Administration also requests an FY 2013 advance appropriation 
of $52.541 billion (exclusive of estimated medical 
collections).
    The Administration's revised request for FY 2012 is 
explained by factoring in a $713 million rescission due to the 
cumulative impact of the statutory freeze on pay raises for 
Federal employees in 2011 and 2012, and a $953 million increase 
attributable to potential increased reliance on the VA health 
care system due to economic employment conditions. Because the 
Administration is not convinced whether the $953 million will, 
in fact, be needed to meet health care needs of the system, it 
has labeled the $953 million as a ``contingency fund,'' i.e., 
to be appropriated, but only released for obligation if events 
dictate.
    The Administration has requested the ability to carry over, 
from one year to the next, money it claims is associated with 
certain management savings. It asserts that, contrary to recent 
budget submissions (which assumed no carryover of unobligated 
balances from one year to the next), the ability to carryover 
savings is critical in a multi-year planning process where one 
year's request builds upon another.
    Finally, the Administration assumes the availability of 
$3.078 billion in medical collections (receipts from copayments 
and insurance billings associated with care provided for non 
service-connected conditions) in FY 2012. This estimate is a 
downward revision of the original FY 2012 advance request 
collections assumption of $3.679 billion. The VA has also 
decreased its collections estimate for FY 2011 by $473 million 
to an amount that is $34 million higher than the amount 
collected in FY 2010.
    We applaud the goals outlined in the President's request. 
Those goals include eliminating veteran homelessness; 
increasing accessibility for veterans whose access to care may 
be limited by geography, disability, or other complications; 
overcoming barriers and other factors associated with health 
care quality for women veterans; implementing the mental health 
strategic plan to provide appropriate mental health services 
system-wide; and preventing suicide among our veterans.
    We are encouraged by VA's intent to increase resources for 
prosthetics by 39 percent. However, we are concerned about the 
ability of VA to meet the needs of the younger and more active 
amputees with the latest technology and provide consistent and 
coordinated care throughout the system. We intend to 
aggressively oversee this program to ensure funds are 
effectively utilized to provide state-of-the-art prosthetic 
care for both recently combat-injured veterans and veteran 
amputees from all eras.
    Family caregivers are often at the core of what sustains 
the treatment and recovery of a wounded, ill, or injured 
servicemember. However, when a family member assumes this role, 
there are many challenges they themselves may face including 
lost income, travel and relocation costs, child care concerns, 
exhaustion, and emotional or psychological stress. Recognizing 
the commitment and struggles of family caregivers, Congress 
enacted Public Law 111-163, the Caregivers and Veterans Omnibus 
Health Services Act. This law requires VA to establish a 
comprehensive program of assistance for family caregivers. We 
are disappointed with VA's delay in implementing this important 
program and the initial implementation plan submitted to 
Congress, which fails to meet Congressional intent. Further, we 
are deeply troubled with the FY 2012 budget submission that 
allocates only $66 million to implement the enhanced programs 
for caregivers under sections 101 through 104 of Public Law 
111-163. The Committee is committed to getting this right for 
veterans and their caregivers and intends to ensure that the 
program is implemented expeditiously, fully meets Congressional 
intent, and is appropriately funded.

Contingency Fund

    Each of the last three budget cycles occurred in the heart 
of the economic recession, but the budget requests and actual 
appropriation levels during that three-year period (FY 2009, FY 
2010, and FY 2011) relied on health care utilization data that 
predated the recession. Unlike the request for FY 2012, the 
budget requests for those years did not incorporate an 
``unemployment economic variable'' when projecting what 
resources would be necessary to sustain the medical care 
system. It is reasonable to assume that if an unanticipated 
surge in demand because of declining economic conditions was to 
occur and have an impact on VA resources, one might have 
expected it to occur already.
    In fiscal years 2009, 2010, and 2011, VA assumed no 
carryover of unobligated balances from one year to the next. 
However, actual medical care carryover from FY 2009 to FY 2010 
was well over $1 billion; actual carryover from FY 2010 to FY 
2011 was nearly $1.5 billion; and there is now an assumed 
carryover of $1.1 billion from FY 2011 to FY 2012. Thus, it is 
reasonable to conclude that even in the absence of current data 
on the effects of the recession on veterans' reliance on VA's 
health care system, VA received sufficient resources to meet 
the health care needs of America's veterans. Not only did VA 
have unanticipated unobligated balances to carry over, it also 
improved on its key quality measures (another indicator of 
whether resources provided were sufficient). Although we are 
sensitive to the abundance of caution the Administration wishes 
to take by requesting a contingency fund in the event it is 
needed, we believe there are other means available to monitor 
and meet the needs of the system that do not require providing 
what amounts to a $953 million advance supplemental.
    We also have institutional concerns regarding the 
feasibility of advocating that an appropriation be provided 
that is expended solely at the discretion of the Executive 
Branch. When Congress appropriates resources, it is with the 
full expectation that those resources be expended. If the 
Executive Branch believes that it has been provided with too 
many resources, then it can request that Congress rescind those 
funds.

Carryover and Management Savings

    In past Administrations' budget submissions, no carryover 
of funds for medical care was assumed for fiscal years 2009, 
2010, and 2011. With this year's request, the Administration 
does assume a carryover from FY 2011 into FY 2012, and from FY 
2012 into FY 2013, but the Administration characterizes the 
carryover as evidence of savings realized from certain 
management actions it has undertaken or will soon undertake.
    Although we agree that carryover of funds from one year to 
the next is a prudent use of taxpayer dollars and must 
absolutely be built into a subsequent year's budget request, we 
disagree with characterizing such carryover as evidence of 
savings achieved due to management actions. To the extent VA is 
able to account for specific savings associated with planned 
management actions, we would expect those savings to already be 
reflected in VA's current resource request. For example, it is 
reasonable to assume that as VA becomes more efficient in 
purchasing goods and services for use in its health care 
system, that those savings will be built into the Enrollee 
Health Care Projection Model VA uses to justify its 
appropriation request. To ask Congress to appropriate the full 
amount VA assumes it can save by being more efficient strikes 
us as antithetical to how a business or family would budget. 
Again, we agree that permitting VA to carry money over into a 
subsequent fiscal year is, and always has been, an important 
aspect of how VA manages its resources effectively. We do not 
agree with VA's new attempt to characterize such carryover as 
evidence of savings. We intend to follow up with the Government 
Accountability Office to determine whether the management 
savings VA claims it can achieve are, in fact, directly or 
indirectly factored into its Enrollee Health Care Projection 
Model forecasting of resource needs.

Medical Collections

    As noted previously, the Administration has revised its 
estimate for FY 2012 medical collections downward, from $3.679 
billion to $3.078 billion. We are concerned with such a large 
re-estimate given that VA's collections efforts have generally 
exceeded original budget estimates. Further, it is our 
understanding that as VA expands the number of Congressionally-
directed Consolidated Patient Accounting Centers nationwide, it 
will become more efficient in its medical collections efforts. 
Notwithstanding all of the above, VA relied on its Enrollee 
Health Care Projection Model estimates of total resource need 
when it revised its collections estimates for FY 2012. We, 
therefore, will accept the revised estimate but keep a watchful 
eye on this critical source of revenue going forward.

Recommendation

    We believe the amounts contained in H.R. 1 for VA medical 
care in FY 2012 are in line with what is required to meet the 
health care needs of the VA system. We also believe those 
amounts will provide a reasonable measure of protection should 
resources be strained by unanticipated demand for care or an 
unexpected shortfall in revenue from collections. We further 
believe that careful monitoring by Congress of VA's health care 
expenditures has been, and will continue to be, accomplished 
via a diligent examination of quarterly reports submitted to 
Congress. These reports look at planned versus actual spend-
through rates, as well as specific quality measures, to ensure 
the needs of the health care system are being met. Should data 
from these quarterly reports suggest additional resources are 
necessary, the Administration and Congress will work together 
to bridge any urgent budgetary gap that may arise.
    It should be noted that adoption of the medical care 
funding levels proposed in H.R. 1 would be tantamount to 
providing nearly all ($713 million out of $953 million) of the 
Administration's proposed contingency fund. We do not believe, 
however, that these funds should be held by the Office of 
Management and Budget as a contingency. Instead, the funds 
should be released to the field for use in providing medical 
care to veterans and to supplement resources for implementation 
of the family caregiver provisions of Public Law 111-163. 
Should the funds not be needed, we would expect it to be 
reflected in carryover of unobligated balances and adjustment 
of appropriation needs going forward or a rescission request 
from the Administration.
    The Committee anticipates that conclusive action will soon 
be taken on the FY 2011 spending bill, which includes FY 2012 
advance appropriations for VA medical care accounts. The 
Committee believes that the difference between this expected 
amount and the Administration's revised request, $240 million, 
should be allocated among other VA accounts to address specific 
needs outlined below.

               VETERANS' MEDICAL AND PROSTHETIC RESEARCH

    For FY 2012, the Administration requests $509 million for 
medical and prosthetic research, a reduction of $72 million 
from the expected level of funding for FY 2011 under a 
continuing resolution. The VA medical and prosthetic research 
program makes significant contributions to the advancement of 
medicine, defining new standards of care, and improving the 
lives of our veterans and all Americans. The program 
accomplishes this through conducting research focused on 
injuries, illnesses and conditions related to military service 
and by serving as an effective recruitment and retention tool 
for high quality clinician-investigators who care for our 
veterans. With the increasing number of veterans with 
debilitating combat injuries, including post-traumatic stress 
disorder, incurred in the Global War on Terror, this is not the 
time to cut this valuable research program dedicated to 
benefiting the clinical treatment needs of our veterans.
    We recommend an additional $72 million to restore the level 
of funding to FY 2011 levels. However, at the same time, we are 
disturbed by reports that a substantial portion of the medical 
and prosthetic research appropriation for FY 2010 was not spent 
in a timely fashion and was carried over to FY 2011. There are 
more than a sufficient number of worthy research proposals to 
justify full funding of the medical and prosthetic research 
account and we find it unacceptable that research to develop 
potentially life-saving treatments would be held up by 
management failures. It is our understanding that the inability 
to expend all of the research funds in FY 2010 may be 
attributed in part to failures in hiring, contracting and 
information technology (IT) procurement necessary for the 
conduct of VA-funded research projects. We expect VA to 
immediately conduct a review to identify the reason these funds 
were not expended and promptly implement a corrective strategy 
to prevent a future such occurrence.

                         INFORMATION TECHNOLOGY

    For FY 2012, the Administration requests $3.161 billion for 
the Office of Information and Technology (OI&T). Although we 
generally support the request, concerns remain in several 
areas. One of these concerns is a lack of a clearly-defined IT 
strategy, including how VA intends to address previously-
identified, current, and future weaknesses in information 
security. We believe that resolving these security issues and 
better defining a long-term IT strategy will not only help VA 
better address the needs of veterans, it will also enable 
better coordination between VA and the Department of Defense in 
transitioning servicemembers to veteran status.
    We are also concerned about a large influx of human capital 
specifically under the control of OI&T without a clear 
definition of what job positions these employees will have or 
what the long-term plan is for them once IT milestones have 
been reached and goals accomplished. The Administration's FY 
2012 budget request supports a staffing level of 7,345 full 
time equivalents (FTE) and another 182 reimbursable FTE under 
OI&T, an increase of 674 FTE, or nearly 10 percent, over FY 
2010 staffing levels. A clearer definition of the job roles, 
titles, and locations of both existing employees as well as the 
significant number of new employees would greatly increase 
transparency and accountability for VA's IT performance and 
accomplishments.
    Lastly, we remain concerned about a lack of cost-benefit 
analyses being provided before VA undertakes major IT projects. 
Given a recent history of several multi-million dollar programs 
being cancelled after a period of time with no result to show 
for the expenditure, a cost-benefit analysis provided in 
advance of undertaking large-scale IT programs would provide 
better stewardship of taxpayer dollars and clearly identify 
intended goals and milestones.

                         CONSTRUCTION PROGRAMS

    For FY 2012, the Administration requests a total of $1.271 
billion for VA's four construction accounts: Major Construction 
($590 million); Minor Construction ($550 million); State 
Extended Care Facility Construction Grants ($85 million); and 
State Cemetery Construction Grants ($46 million). The total 
resource request would, assuming amounts for FY 2011 are funded 
at the President's requested level, translate to a reduction of 
$478 million, or 37.6 percent. Further, consistent with the 
requirements of section 905 of Public Law 111-275, the 
Administration proposes to allocate $136 million in major 
construction funding derived from bid savings.
    VA's new Strategic Capital Investment Planning (SCIP) 
process is a 10-year plan designed to identify and prioritize 
specific capital investment options to meet service delivery 
gaps in the areas of safety, security, utilization, access, 
seismic protection, facility condition assessments, parking and 
energy. SCIP projects a 10-year resource need of between $53 
and $65 billion.
    VA's total capital request (including facility leases, 
equipment, and non recurring maintenance needs not covered 
under the four construction accounts named above) for FY 2012 
is $2.876 billion. At the present rate, it would take 20 years 
to meet the minimum resource need identified in the SCIP 10-
year plan. We are, therefore, concerned that the SCIP plan is 
unrealistic on its face and would like the opportunity to 
engage the Administration on the plan going forward. Given that 
the stated needs of the system are vast, we recommend providing 
resources above the President's request for major and minor 
construction totaling $168 million.

                         GENERAL ADMINISTRATION

    The Administration's FY 2012 request for General 
Administration is $48.225 million, a 33.5 percent increase over 
FY 2009 levels. General Administration funding covers certain 
VA support offices, such as the Office of the Secretary, the 
Office of Management, the Office of Policy and Planning, and 
the Office of Congressional and Legislative Affairs, and one 
office (the Board of Veterans' Appeals) providing direct 
services to veterans. For your review, below is a chart of 
expected three-year increases in entities funded under the 
General Administration account. As you will see, growth in 
these central office support functions has been substantial:

----------------------------------------------------------------------------------------------------------------
                                                                              President's FY
            General Administration Accounts                   FY 2009          2012 Request        % Increase
----------------------------------------------------------------------------------------------------------------
Office of the Secretary................................           $7.146 M          $10.104 M              +41.2
Board of Veterans' Appeals.............................           68.582 M           78.006 M              +13.7
General Counsel's Office...............................           74.343 M           84.073 M             +13.08
Management Office......................................           37.546 M           46.222 M              +23.1
Human Resources Office.................................           61.901 M           74.343 M              +20.1
Policy and Planning Office.............................           14.602 M           28.647 M              +96.2
Security and Preparedness Office.......................           12.025 M           19.873 M             +65.26
Public Affairs Office..................................           10.005 M           23.981 M               +140
Congressional Affairs Office...........................            4.379 M            6.585 M             +50.37
Acquisition & Construction Office......................           45.243 M           76.391 M             +68.85
                                                        --------------------------------------------------------
    Total General Administration.......................            335.8 M          448.225 M              +33.5
----------------------------------------------------------------------------------------------------------------

    Although we do not doubt that many of these support offices 
serve important oversight, planning, and coordination 
functions, and even administer some grant programs providing 
direct assistance to veterans (such as the grant program to 
support the U.S. Paralympic adapted sports program administered 
by the Office of Public and Intergovernmental Affairs), we 
cannot support growth on the order that is proposed in several 
General Administration accounts, especially during a time of 
fiscal austerity. Therefore, we recommend realignment of a 
minimum $17.5 million (excluding any grant program providing 
direct assistance to veterans) out of General Administration to 
support programs where those resources could be more 
effectively used, particularly those providing direct services 
to veterans.

                    VETERANS BENEFITS ADMINISTRATION

    The Administration proposes $2.019 billion for the Veterans 
Benefits Administration, a decrease of $130 million compared 
with the expected full-year FY 2011 appropriation. The decrease 
in spending is largely attributable to an expected reduction of 
staffing for education claims filed under the new, Post-9/11 GI 
Bill. The reduction was anticipated in light of VA's rollout of 
an information technology tool allowing for automated 
processing of Post-9/11 GI Bill claims.

Compensation and Pension Service

    We are deeply concerned about the growing size of the 
backlog of claims for VA disability compensation. Since January 
2009, the backlog of disability claims has grown by 103 
percent, and this budget projects that the average days to 
complete a claim will rise from 165 days in FY 2010 to 230 days 
in FY 2012. These numbers grew despite the nearly 4,000 
additional employees VA has hired since 2007.
    Additionally, VA recently established new regulations to 
make it easier for Vietnam veterans who were exposed to the 
Agent Orange herbicide to receive service-connected 
compensation. This decision has resulted in significant 
increases in workload for disability compensation as a result 
of the regulatory change.
    We believe a multi-faceted approach is necessary for the 
Veterans Benefits Administration to overcome the challenges it 
faces. This approach includes a paradigm shift that involves 
placing a high level of priority on quality of work as well as 
quantity. To do so, VA must place greater emphasis on employee 
training and accountability.
    We have long recognized the need for technological 
improvements to VA's business process, including the 
development of a paperless, rules-based adjudication system. To 
accomplish this goal, VA is requesting $148 million to fund the 
Veterans Benefit Management System. We agree with this request, 
but will be conducting vigorous oversight during the course of 
the fiscal year to ensure VA meets the 2012 deadline for 
implementation.

Vocational Rehabilitation Service

    We also draw attention to the needs of veterans being 
served under the Vocational Rehabilitation and Employment 
(VR&E) program. Unlike other VA benefit programs, VR&E is a 
``high touch'' program that begins with a detailed evaluation 
of the impact of a service-connected disability on a veteran's 
ability to obtain and maintain satisfactory employment. The 
process consists of formal testing and evaluation by 
professional counselors who hold advanced degrees in vocational 
rehabilitation-related fields. Evaluation is followed by 
development and implementation of a rehabilitation plan focused 
on maximizing the veteran's employability.
Nearly 90 percent of VR&E participants are attending formal 
training including college degree programs.
    The President has requested 1,286 direct FTE to provide 
vocational rehabilitation services, an increase of 129 FTE 
above the FY 2011 VR&E direct FTE level, including support 
staff on board at this time. However, given the caseload 
increase of roughly 10,000, the FTE increase will do little to 
reduce the average caseload from the current 135 to 150 
veterans per counselor. Therefore, we recommend a reallocation 
of $5.5 million from the General Administration account to 
support an additional 50 professional VR&E counselors to 
shorten both the time needed to begin receiving VR&E services 
and to increase the quality of those services.

                    NATIONAL CEMETERY ADMINISTRATION

    For FY 2012, the Administration proposes $251 million for 
the National Cemetery Administration (NCA), which would 
continue flat-line funding for the second straight year. We 
generally concur with the President's request for NCA, but 
recommend an additional $2 million be included to continue the 
National Shrine Commitment at NCA. This additional funding 
would ensure the highest possible standards for all of our 
veterans' final resting places, and would be used for 
infrastructure projects such as irrigation, renovation of 
historic structures, headstone cleansing, and road resurfacing.

                          VA INSPECTOR GENERAL

    The Administration proposes a second straight year of flat 
funding for the Office of the Inspector General, proposing $109 
million in funding for FY 2012. The Inspector General's Office 
provides critical oversight of VA's programs and services to 
eliminate waste, fraud and abuse. It also conducts periodic 
reviews of VA health care services to ensure applicable 
processes governing patient safety are being adhered to. In 
light of the need to eliminate wasteful spending, the mission 
of the Inspector General's Office is more important now than 
ever. Therefore, we recommend a $10 million increase in this 
account relative to the President's request.

                               CONCLUSION

    These views reflect the best judgment of the undersigned 
Members of the Committee as of this date. We have submitted 
additional questions regarding the Administration's budget 
proposal and will conduct a series of oversight hearings in the 
coming months on other facets of the request. If we or the 
Committee staff can provide assistance regarding the views 
contained in this letter, please don't hesitate to contact us.

            Sincerely,

                    Jeff Miller, Chairman; Bob Filner, Ranking 
                            Democratic Member; Gus M. Bilirakis, Vice-
                            Chairman; Cliff Stearns, Committee Member; 
                            Doug Lamborn, Committee Member; David P. 
                            Roe, Committee Member; Bill Flores, 
                            Committee Member; Bill Johnson, Chairman, 
                            Subcommittee on Oversight and 
                            Investigations; Jeff Denham, Committee 
                            Member; Jon Runyan, Chairman, Subcommittee 
                            on Disability Assistance and Memorial 
                            Affairs; Dan Benishek, Committee Member; 
                            Ann Marie Buerkle, Chairwoman, Subcommittee 
                            on Health; Corrine Brown, Committee Member; 
                            Silvestre Reyes, Committee Member; Michael 
                            H. Michaud, Ranking Democratic Member, 
                            Subcommittee on Health; Linda Sanchez, 
                            Committee Member; Bruce L. Braley, Ranking 
                            Democratic Member, Subcommittee on Economic 
                            Opportunity; Jerry McNerney, Ranking 
                            Democratic Member, Subcommittee on 
                            Disability Assistance and Memorial Affairs; 
                            Joe Donnelly, Ranking Democratic Member, 
                            Subcommittee on Oversight and 
                            Investigations; Timothy J. Walz, Committee 
                            Member; John Barrow; Committee Member; Russ 
                            Carnahan, Committee Member.

        MESSAGES FROM THE PRESIDENT AND EXECUTIVE COMMUNICATIONS

                              ----------                              --
--------


                        Executive Communications

    February 16, 2011: Letter from Director of Regulations 
Management, Department of Veterans Affairs, transmitting the 
Department's final rule--Herbicide Exposure and Veterans with 
Covered Service in Korea (RIN: 2900-AN27) received February 4, 
2011, pursuant to 5 U.S.C. 801(a)(1)(A).
    February 16, 2011: Letter from Director of Regulations 
Policy and Management, Department of Veterans Affairs, 
transmitting the Department's final rule--Loan Guaranty Revised 
Loan Modification Procedures (RIN: 2900-AN78) received February 
4, 2011, pursuant to 5 U.S.C. 801(a)(1)(A).
    February 28, 2011: Letter from Director of National 
Legislative Commission, The American Legion, transmitting the 
financial statement and independent audit of The American 
Legion, proceedings of the 92nd annual National Convention of 
the American Legion, held in Milwaukee, Wisconsin, from August 
20-26, 2010, and a report on the Organization's activities for 
the year preceding the Convention, pursuant to 36 U.S.C. 49.
    March 10, 2011: Letter from the Assistant Attorney General, 
Department of Justice, transmitting first quarterly report of 
FY 2011 on Uniformed Service Employment and Reemployment Rights 
Act of 1994.
    March 17, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's final rule--Updating Fire Safety Standards 
(RIN: 2900-AN57) received February 18, 2011, pursuant to 5 
U.S.C. 801(a)(1)(A).
    March 17, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's final rule--Copayments for Medications After 
June 30, 2010 (RIN: 2900-AN65) received February 18, 2011, 
pursuant to 5 U.S.C. 801(a)(1)(A).
    March 31, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's final rule--Update to NFPA 101, Life Safety 
Code, for State Home Facilities (RIN: 2900-AN59) received 
February 28, 2011, pursuant to 5 U.S.C. 801(a)(1)(A).
    April 1, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's final rule--Hospital and outpatient care for 
veterans released from incarceration to transitional housing 
(RIN: 2900-AN41) received February 28, 2011, pursuant to 5 
U.S.C. 801(a)(1)(A).
    April 7, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's final rule--Paralympics Monthly Assistance 
Allowance (RIN: 2900-AN43) received March 15, 2011, pursuant to 
5 U.S.C. 801(a)(1)(A).
    April 12, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's final rule--Board of Veterans' Appeals: Remand 
or Referral for Further Action; Notification of Evidence 
Secured by the Board of Opportunity for Response (RIN: 2900-
AN34) Received March 29, 2011, pursuant to 5 U.S.C. 
801(a)(1)(A).
    May 2, 2011: Letter from Assistant Secretary of Defense, 
Department of Defense, transmitting a draft of proposed 
legislation entitled the ``National Defense Authorization Act 
for Fiscal Year 2012,'' pursuant to 31 U.S.C. 1110.
    May 12, 2011: Letter from Director of Regulations Policy 
and Management, Department of Veterans Affairs, transmitting 
the Department's ``Major'' final rule--Caregivers Program (RIN: 
2900-AN94) received May 5, 2011, pursuant to 5 U.S.C. 
801(a)(1)(A).
    May 13, 2011: Letter from Assistant Attorney General, 
Department of Justice, transmitting Second Quarterly Report of 
FY 2011 under The Veterans' Benefits Improvement Act of 2008.
    June 1, 2011: Letter from Assistant Secretary, Department 
of Justice, transmitting eight legislative proposals to be a 
part of the National Defense Authorization Bill for Fiscal Year 
2012.
    June 14, 2011: Letter from Under Secretary and Deputy 
Secretary, Department of Defense, Department of Veterans 
Affairs, transmitting Activities of Center of Excellence in 
Mitigation, Treatment and Rehabilitation of Traumatic Extremity 
Injuries and Amputations for Fiscal Year 2009.
    June 15, 2011: Letter from Secretary, Department of 
Veterans Affairs, transmitting a draft bill entitled, 
``Veterans Benefit Programs Improvement Act of 2011.''
    June 16, 2011: Letter from the Speaker: A memorial to the 
House of Representatives of the State of Hawaii, relative to 
the House Concurrent Resolution No. 253, H.D. 1 urging the 
Congress to expedite the processing of all claims for payments 
and the distribution of checks to Filipino veterans under the 
American Recovery and Reinvestment Act.

                                  
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